Argentina: ‘15% Global Minimum Corporate Tax Rate Is Too Low’

Argentina’s Finance Minister Martin Guzman stated that the “Global Minimum Corporate Tax” of 15 percent proposed by the Group of Seven (G7) is too low to fight inequalities and the pandemic.

He stressed that international negotiations should take as a starting point a rate of at least 21 percent given that this figure would allow for better regulation of large corporations in less time.

Currently, the Organization for Economic Cooperation and Development (OECD) is coordinating efforts of several countries to define a common regulatory framework that allows to tax transnational corporations.

The result of this international coordination work will be known at the next meeting of finance ministers of the Group of Twenty (G20).

#CARIBBEAN: Caribbean territories with specialized tax regimes are girding against a global minimum business tax rate of 15% proposed earlier this month by the G7 nations, according to attorneys at Freeport-based law firm Parris Whittaker. pic.twitter.com/9MLyA4JnN5

— CaribbeanNewsNetwork (@caribbeannewsuk) June 23, 2021

Reaching lasting consensus on tax matters, however, will be difficult. For instance, Nigeria’s Tax Policy Department Director Mathew Gbonjubola said the global minimum rate could increase tax evasion in African countries.

This possibility was also admitted by the Argentine Minister who argued that the establishment of an internationally uniform tax could not provide additional income to developing countries.

#Argentina #debt Argentina manages to reach a deal to renegotiate its debt with the Paris Club in a victory for President Alberto Fernandez pic.twitter.com/SNP5Hgmska

— teleSUR English (@telesurenglish) June 24, 2021