Global minimum tax threatens to fail – even in US | Markets Macro

Things are not going well for the global minimum tax. Last Friday, the Hungarian government vetoed the EU plan. But it is not only there that the grand scheme of international tax law is facing opposition. It may fail in the United States as well. If it is not taxed this summer, it should not be an issue for at least the next two years.

Last fall, 137 countries agreed to introduce a global minimum tax of 15% on the profits of multinational corporations selling over 50 750 million. In addition, companies with sales of more than 20 billion and profits of more than 10% have to pay higher taxes where sales actually take place and less where headquarters are located. The project was originally launched by Amazon, Alphabet & Co. Was the digital tax to tax most effectively. Switzerland is participating in the project, and about two hundred companies in the country have been affected.

Hungary opposes

Now the reform must be included in national law before it can take effect in 2024. But it is not possible to reach that deadline. In the EU, Poland was the first country to express concerns. However, the French EU presidency was able to convince the country – with the support of US Treasury Secretary Janet Yellen, to use $ 35.4 billion in credits and loans to officially overcome the epidemic.