Global tax deal must make BigTech pay, says Britain

A global deal on a minimum corporate tax rate must force BigTech companies to pay their fair share, the UK has said.

Last week, the US proposed that multinational companies should be taxed at a minimum of 15 per cent, which is less than an original proposal of 21 per cent.

While France, Germany and Italy were reportedly pleased with the new tax rate, the UK has not yet endorsed it.

"Our consistent position has been that it matters where tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities," a British finance ministry source said on Thursday, according to Reuters. "We welcome the U.S.'s renewed commitment to tackling the issue and agree that minimum taxes might help to ensure businesses pay tax – as long as they are part of that package approach.”

The comments come a day before Britain hosts an online meeting of G7 finance ministers and central bankers, although tax is not expected to be discussed in depth.

On Thursday, French finance minister Bruno Le Maire called on countries to reach an agreement on a minimum tax rate by next week. UK chancellor, Rishi Sunak, will host an in-person meeting of finance ministers in London on 4 and 5 June.

"At London's G7, the world's most powerful economies… must say: we agree on a new international tax, including a digital tax and a minimum tax. This will give a strong push so that at the G20 in Venice, in mid-July, a deal can be reached," Le Maire told a French radio station.

    Share Story:

Recent Stories