久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Policies

G-7 tax plan to hurt tech, drug MNCs

By SHI JING in Shanghai | China Daily | Updated: 2021-06-15 08:45
Share
Share - WeChat
British Prime Minister Boris Johnson, US President Joe Biden, Canadian Prime Minister Justin Trudeau, Italian Prime Minister Mario Draghi, President of the European Commission Ursula von der Leyen, President of the European Council Charles Michel, Japanese Prime Minister Yoshihide Suga, German Chancellor Angela Merkel and French President Emmanuel Macron, sit around the table at the top of the G7 meeting in Carbis Bay, Cornwall, Britain, on June 11, 2021. [Photo/Agencies]

Average rate in China higher than the minimum level levied for global firms

The latest agreement reached among G7 economies over a possible minimum tax rate will dent the profits of leading global technology and pharmaceutical giants, said experts.

Finance ministers from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States decided on June 5 to implement a global minimum corporate tax of at least 15 percent on multinational companies. The deal allows countries to levy more taxes on multinational companies and reduce those companies' incentives to set up units in tax havens.

The new tax rate will be applicable to multinationals with profit margin of at least 10 percent. The portion of profits exceeding the 10 percent benchmark will face a 20 percent tax rate in places where companies have operations or businesses, regardless of the location of their physical headquarters.

Wang Wenbin, a spokesman for the Ministry of Foreign Affairs, said during a regular media briefing on June 7 that G20 economies should adopt a practical approach to the global minimum corporate tax issue.

Currently, China imposes a 25-percent general corporate tax rate with exemptions for a few industries such as semiconductors. The current corporate tax rates in the country are already higher the suggested minimum global corporate tax rate, they said.

Experts, however, feel that the 15 percent bar set by the G-7 is not that high. Data from Washington DC-based think tank Tax Foundation showed that last year, companies were subject to 32 percent tax in France, 29.9 percent in Germany, 27.8 percent in Italy, 29.7 percent in Japan and 19 percent in the UK.

According to a report jointly compiled by Xie Yanmei and Udith Sikand, analysts at market consultancy Gavekal Research, the deal reduces international tax competition by overcoming long standing prejudice about national tax sovereignty in favor of supranational cooperation. But in the long run, this is only likely to mean higher effective corporate tax rates, they said.

Sean Darby, a strategist at investment bank Jefferies, said companies with significant revenues attributable to intangible assets will feel the pinch most, particularly leading internet and pharmaceutical companies.

It is also in line with the discovery from David Kostin, chief US equity strategist at Goldman Sachs. Kostin's research, which tracked S&P index listed companies with 50 percent of their income coming from outside the US and having foreign effective tax rates of less than 15 percent, found that 30 companies would fall into the new tax bracket, with a majority of them in the technology or healthcare sectors.

Dani Rodrik, professor of international political economy at Harvard University's John F. Kennedy School of Government, said the deal was "historic" in that hyper-globalization rules, under which countries must compete to offer global corporations "ever-sweeter deals", are being rewritten.

Apart from significantly lowering the average statutory tax rate over the past four decades, Rodrik said that many countries "have generous loopholes and exemptions that reduce the effective tax rate to single digits". Besides, some multinationals have shifted profits to tax havens such as Bermuda, which he depicted as "more damaging".

Experts from Fitch Ratings, however, point out that there is no guarantee a global minimum tax will become law in the US or any other Organization for Economic Cooperation and Development member, given the large number of countries where passage of new legislation would be required and weak bipartisan support for higher taxes in the US.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 国产专区中文字幕 | 永久精品免费影院在线观看网站 | 波多野结衣中文一区二区免费 | 欧美成人看片黄a免费 | 午夜精品在线 | 成人精品一区二区激情 | 中文字幕亚洲一区二区va在线 | 毛片免费全部播放一级 | 成人国内精品久久久久影院 | 中文字幕亚洲精品日韩精品 | 亚洲自拍中文 | 国产激情视频网站 | 黄色免费在线观看视频 | 91精品一区国产高清在线 | 久久精品视屏 | 亚洲成人综合视频 | 国产原创91 | 国内自拍偷拍视频 | 女人张开腿让男人桶免费网站 | 欧美极品在线 | 日本二区免费一片黄2019 | 手机福利片 | 久久中文字幕乱码免费 | 久草热久 | 一级毛片牲交大片 | 免费欧洲毛片a级视频 | 嫩草影院在线观看网站成人 | 日本草草视频在线观看 | 欧美日本一二三区 | 女同日韩互慰互摸在线观看 | 国产免费一区二区三区免费视频 | 成人欧美视频在线观看播放 | 99久久精品6在线播放 | 国产成人在线播放视频 | 亚久久伊人精品青青草原2020 | 欧美ab| 国产精品三级在线播放 | 一级做a爰性色毛片免费 | 久久精品亚洲乱码伦伦中文 | www中文字幕在线观看 | 性欧美一级毛片欧美片 |