The trade, investment and tax cooperation task force of the T20 Argentina team, part of the Argentine G20 presidency, has called for action from G20 leaders to prevent international tax competition becoming ‘a ruinous race to the bottom’.
The trade, investment and tax cooperation task force of the T20 Argentina team, part of the Argentine G20 presidency, has called for action from G20 leaders to prevent international tax competition becoming ‘a ruinous race to the bottom’.
The group believes the US tax reforms of December 2017 could push other G20 governments to react by:
Competition of this type in corporate taxes could affect the tax base of industrialised countries, while developing countries may come under pressure to raise indirect taxes on consumers.
The report, ‘Tax competition’, proposes that G20 governments:
‘A common minimum corporate tax rate would stop rewarding tax havens and prevent a race to the bottom, while keeping G20-based multinational companies, as well as other companies and permanent establishments operating in G20 countries, on a level-playing field with competitors’, the report states.
Corporate tax rates above the minimum level ‘would remain subject to the national tax rules’.
The report goes on to say that, after closer cooperation on BEPS and agreeing on a CCTB: ‘a third, longer-term measure, introducing a common consolidated corporate tax base (CCCTB) with broad international applicability would be an adequate approach to taxing the globalised and digitalised world economy’.
The trade, investment and tax cooperation task force of the T20 Argentina team, part of the Argentine G20 presidency, has called for action from G20 leaders to prevent international tax competition becoming ‘a ruinous race to the bottom’.
The trade, investment and tax cooperation task force of the T20 Argentina team, part of the Argentine G20 presidency, has called for action from G20 leaders to prevent international tax competition becoming ‘a ruinous race to the bottom’.
The group believes the US tax reforms of December 2017 could push other G20 governments to react by:
Competition of this type in corporate taxes could affect the tax base of industrialised countries, while developing countries may come under pressure to raise indirect taxes on consumers.
The report, ‘Tax competition’, proposes that G20 governments:
‘A common minimum corporate tax rate would stop rewarding tax havens and prevent a race to the bottom, while keeping G20-based multinational companies, as well as other companies and permanent establishments operating in G20 countries, on a level-playing field with competitors’, the report states.
Corporate tax rates above the minimum level ‘would remain subject to the national tax rules’.
The report goes on to say that, after closer cooperation on BEPS and agreeing on a CCTB: ‘a third, longer-term measure, introducing a common consolidated corporate tax base (CCCTB) with broad international applicability would be an adequate approach to taxing the globalised and digitalised world economy’.