The five largest countries of the European Union (EU) announced that they will apply the minimum corporate tax next year.
The economy ministers of the five major EU countries, meeting in Prague, the capital of Hungary, agreed to impose a tax of at least 15 percent on large international organizations in 2023.
A joint statement from Germany, France, Italy, Spain and the Netherlands said, “If there is no consensus in the coming weeks, our governments are fully committed to fulfilling our commitment. We are ready to implement the global minimum effective taxation in 2023 and by all possible legal means.”
The EU’s 15 percent minimum corporate tax application cannot be implemented due to Hungary’s veto in June.
A year ago, the Organization for Economic Cooperation and Development (OECD) reported that the agreement on the taxation of at least 15 percent from 2023 in the countries in which multinational companies operate had been accepted by 136 countries.
‘WE ARE TRYING TO CONSUME ALL MEMBERS’
German Finance Minister Christian Lindner said that Germany’s coalition government has begun to prepare national legislation that can be used when necessary.
“We strongly support the European approach,” Lindner said in Prague.
Noting that his government is ready to use national provisions, French Finance Minister Bruno Le Maire said, “Now is the time to implement this decision. We should not talk. We must decide.”