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This is the best summary I could come up with:
BERLIN, Nov 10 (Reuters) - 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%.
In 2021 almost 140 countries agreed to an Organisation for Economic Cooperation and Development deal they are meant to implement from next year to prevent big companies like Alphabet’s Google (GOOGL.O) or Amazon (AMZN.O) avoiding taxation by transferring profits to low-tax countries.
The increase is expected to raise $220 billion globally for governments strapped for cash after the COVID-19 pandemic and struggling to ride out a cost-of-living crisis, although the ratification process has hit hurdles in various countries.
Last December the European Union member states agreed on a common directive to ensure uniform implementation of the tax within the EU, and that directive must be passed into national law in all EU countries by the end of the year.
The Ministry of Finance estimated earlier this year that additional tax revenue of 910 million euros could be expected in Germany from 2026.
In 2027 and 2028, the tax is forecast to bring in 535 and 285 million euros, respectively.
The original article contains 264 words, the summary contains 195 words. Saved 26%. I’m a bot and I’m open source!
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
It’ll be interesting to watch someone establish a bank in a space station.
Inevitable, probably.
Yes sir we charge a nominal monthly fee to keep your account active when there is less than $2000 of deposits per month.
Oh, you’d like to close your account? No problem, unfortunately we can’t do that over the phone but we’d be happy to help you with that in person at our head office in LEO.
Inevitably followed by space pirates…
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.
It’ll be interesting to see how Google does when it voluntarily ceases doing business in the EU.
There’s no chance. 30% of their revenue comes from EMEA
It might be cheaper to pay fines than taxes, though
