Groundbreaking new tax arrangement (but not current news)

Status
Not open for further replies.
Page may contain affiliate links. Please see terms for details.
Not sure if people are aware that in July 130 countries have agreed to tackle MNCs particularly US companies and digital companies that do not pay any tax or under pay in the very countries that they have large revenues.

Since July one of the biggest culprit and hold-out, Ireland thru sheer pressure and after being shamed into oblivion signed. Its now 136 countries.

Its our bureaucrats and diplomats that help herd the cats.

Current hold-outs Kenya, Nigeria, Pakistan, and Sri Lanka.

Importantly it sets the global tax floor for corporates at 15%. All these are specifically aimed at the real big boys - EU20B in revenue, dropping to EU10B in 7 years. Note there are other rules.

After all these decades I will finally see part of my spend on US companies remaining in this country.
 
Last edited:

PeteXXX

Cake or ice cream? The choice is endless ...
Location
Hamtun
What are MNC's EU20B & EU10B?
It does sound like a good bit of cooperation, finally, though.


Edit: just remembered MNC
 
Last edited:

Dolorous Edd

Senior Member
Let's see if we can manage this without insulting those who hold a different opinion from us, whether they be business people, politicians or posters.
 

Dolorous Edd

Senior Member
After all these decades I will finally see part of my spend on US companies remaining in this country.

I think you may be disappointed on that score. The "market jurisdiction" rules only apply to companies with global profitability above 10% of global sales. Amazon, for example, has a profitability of 6%.

https://www.oecd.org/tax/internatio...und-breaking-tax-deal-for-the-digital-age.htm
https://www.wsj.com/market-data/quotes/AMZN/financials/annual/income-statement
 
OP
OP
A

Arrowfoot

Guest
I think you may be disappointed on that score. The "market jurisdiction" rules only apply to companies with global profitability above 10% of global sales. Amazon, for example, has a profitability of 6%.

https://www.oecd.org/tax/internatio...und-breaking-tax-deal-for-the-digital-age.htm
https://www.wsj.com/market-data/quotes/AMZN/financials/annual/income-statement
They all will be profitable and hit threshold once the new underlying rules kick in. For instance, transfer pricing will make less sense once the floor for corporate tax goes into 15%. Ireland's corporate tax fell from 50% in 1982 to a record low of 12.5% and undercutting much of the all of the developed world.
 
Last edited:
OP
OP
A

Arrowfoot

Guest
What are MNC's EU20B & EU10B?
It does sound like a good bit of cooperation, finally, though.


Edit: just remembered MNC
Sorry, Multi-national corporation- MNCs because they operate in more than one country have a unique ability to screw the countries where they generate revenues. So operations and expenses are transfer priced to Ireland from UK and low taxes are paid there.

EU - Eurodollars.
 
OP
OP
A

Arrowfoot

Guest
This might help in terms of background and context
https://www.bbc.com/news/magazine-20560359
1634895535198.png
 

Scoosh

Velocouchiste
Moderator
Location
Edinburgh
"This might help'.... with the way CC is now being run:

Mod Note: Please do not start politics threads or engage in personal political debates on CycleChat. We have a dedicated site for politics, current affairs, and global issues - CC News, Current Affairs & Politics

To get an account use the Contact Form and put CC NACA Login in the subject.

Thank you - The Moderator Team

Thread Locked - but feel free to go and post, chat and even argue over on the other site. :okay:
 
Last edited:
Status
Not open for further replies.
Top Bottom