Portugal on Saturday admitted joining the position of France, Spain, Italy, Germany and the Netherlands to jointly move, in the face of a lack of consensus, towards a 15% minimum tax on Big corporate profits.
“We will always be on the side of all proposals that allow this model to advance as quickly as possible, and we will always be on this side. There was a blockade by Poland in the first stage that was bypassed, now the blockade appears in Hungary and we hope that it will be possible to solve this blockade in Hungary , but if the path proves insurmountable, we will always. . be at the forefront of implementing a solution of this kind.”, said Fernando Medina.
Speaking on the second day of the informal meeting of EU Finance Ministers, within the scope of the Czech Presidency of the Council, in Prague, the Portuguese official described this minimum tax as “necessary for Europe, for the good and a sense of justice within societies”.
For Fernando Medina, this is a proposal that “is of the utmost importance that Europe adopts and adopts quickly because, in essence, a proposal that will allow national states to add corporate taxes that, in essence, use jurisdictions where taxation does not exist or is less than 15% so that everyone pays 15%.” at least “.
On the day the finance ministers discussed this issue, Fernando Medina noted that “Portugal has been a great supporter of the progress of this file”.
“We have given great support during the French presidency so that it can be approved because it will make it possible to end a state of deep injustice and deep deregulation within our societies, which is the fact that there are companies that use their capabilities more volatility, they end up fleeing taxes in various The jurisdictions they are subject to, that is, they have very profitable activities and they escape in this way,” the official noted.
“It is essential that everyone pays their rightful share of taxes for our collective good,” he asserted.
siege of Hungary
France, Spain, Italy, Germany and the Netherlands on Friday presented a common position to move forward, in the absence of consensus, with enhanced cooperation to resolve a ban on Hungary from applying, in the European Union, a minimum tax of 15% to profits of large companies will be applied in 2023.
Thus, the proposal of these five countries aims to ensure that this minimum tax is applied, despite the Hungarian embargo of this measure, through the Enhanced Cooperation Mechanism, which allows a minimum number of nine member states to apply if the European Union as a whole, does not reach consensus within a reasonable time.
EU finance ministers have not yet been able to reach a consensus for multinationals to pay at least 15% tax on profits within the group, following the agreement reached at the Organization for Economic Co-operation and Development (OECD) to do so. Siege by Hungary.
Last December, the European Commission proposed a minimum tax of 15% on the profits of multinational companies in the European Union, as agreed in the Organization for Economic Cooperation and Development, with the aim of achieving fairness and financial stability in the community space.
The proposal set an effective tax rate of 15% in the European Union, as agreed by 137 countries in the Organization for Economic Co-operation and Development, and expects the rules to apply to any large group, both domestically and internationally, with a parent company or subsidiary located in a country Member of the European Union.
For several years now, the Organization for Economic Co-operation and Development has been discussing a tax proposal adapted to the globalized and digital economy, with the aim of demanding taxes from multinational companies, which pay them where they are most convenient.
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