The German parliament on Friday approved the implementation of a global minimum corporate tax, as part of an international deal to ensure large companies pay a minimum tax rate of 15%.
An important point of this deal, is that Germany can now collect taxes on profits made elsewhere. If Poland collects 10% tax, then Germany can collect the remaining 5%.
This means that governments aren’t competing for businesses anymore. Instead they are fighting amongst each other to figure out who is allowed which share of the newly found bounty.
exactly. I think all countries to impose a corp tax on their total profits and the corps can deduct any tax they pay somewhere else (if its not reinbursed or some other shenanigan shit) with a minimum of having to pay the percent for all bussiness done in that country. great side effect is it would stop the race to the bottom.
So in the future several enterprises will move to neighbouring countries like Poland or Czech Republic with less strict regulations?
An important point of this deal, is that Germany can now collect taxes on profits made elsewhere. If Poland collects 10% tax, then Germany can collect the remaining 5%.
This means that governments aren’t competing for businesses anymore. Instead they are fighting amongst each other to figure out who is allowed which share of the newly found bounty.
Sure till they run out of those, then they’ll go to space stations and artificial islands
I hope there are measures to prevent exploitative delocalization. Did they think about it?
If you do business there they can tax you… companies are free to profit exclusively off the citizens of the Cayman Islands if that’s their choice.
exactly. I think all countries to impose a corp tax on their total profits and the corps can deduct any tax they pay somewhere else (if its not reinbursed or some other shenanigan shit) with a minimum of having to pay the percent for all bussiness done in that country. great side effect is it would stop the race to the bottom.