They seek that money from technology companies does not end up in tax havens

The proposal that the Biden Administration has already launched internally focuses on preventing multinationals from using their subsidiaries to pay less . The mechanism would consist in that the countries where the multinational headquarters are located establish a minimum rate for all their incomes

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After the United States proposed to agree on a minimum tax rate for large business companies, worldwide the focus has been on large multinationals, especially technological ones .

Due to the above, some countries try to attract them under the scheme of low taxation, among the interested nations, Ireland and Hungary or the tax havens of the Caribbean stand out.

It seeks to put a fence to the aggressive tax planning schemes developed by some large companies in recent years, a proposal that has been welcomed by the OECD or the European Commission and countries such as Spain or France.

However, experts assure that at the moment this proposal is still not very specific and are unaware of its implications and possible effects .

The initiative to establish a minimum corporate tax rate at a global level has been taken up by the administration Biden that seeks a tax increase from 21% to 28% to fund your stimulus plans .

The US proposal involves setting this minimum rate worldwide in 28%, above of 12. 5% considered in the OECD, with the objective of limiting the relocation of subsidiaries to tax havens .

This threshold would not affect countries such as Spain, France or Germany, which are above, but yes to European countries such as Ireland, its tax is 12. 5%, or Hungary, which represents 9%, so lose .

The proposal that the Administration Biden has already launched internally focuses on preventing multinationals from using their subsidiaries to pay less. The mechanism would consist in that the countries where the multinational headquarters are located establish a minimum rate for all their incomes .

So if any of its subsidiaries is based in a low tax territory and does not meet the threshold, you will have to pay the difference at your tax headquarters.

As an example, if the Irish subsidiary of Google or Facebook pays a type of company 12 .5%, established in that country, will have to pay 8.5% remaining for income earned in Ireland up to the minimum of 21%.

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