EU urged to suspend global minimum tax after US exit
German Chancellor Friedrich Merz, the European Union Global Minimum Corporate TaxTo argue that the plan is no longer valid without US participation.
Speaking after a meeting above the highest summit of Germany Zugspitze, Merz said that the continent, which continues with a 15 percent tax in Europe, will make the economy disadvantageous.
“The Americans withdrew, and this concept no longer has a future, Mer Merz said, adding that the German government would deal with the problem.
Minimum 15 percent tax is part of a global corporate tax reform approved by approximately 140 countries after years of talks. The aim is to ensure that large companies pay a more fair tax share.
Depending on the country, the tax, which is at various stages of the application, hits annual income more than $ 871 million (A1.3 billion) (A1.3 billion), regardless of where the profits are produced.
After President Donald Trump declared unacceptable in the United States, the future of politics was suspected.
Washington argued that the global agreement violated financial sovereignty.
A recent G7 compromise enables US companies to exempt from global minimum tax as long as they are subject to a domestic US tax regime.
Canada, holding the presidency of the G7, said the agreement still represents progress in the fight against profit shifts and avoiding tax.
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