Among the nine countries that did not subscribe to the application of a global minimum corporate tax, three are in Latin America and the Caribbean. These are Peru, Barbados as well as Saint Vincent and the Grenadines.
The other six nations that also did not adhere to the global levy are Estonia, Hungary, Ireland, Kenya, Nigeria and Sri Lanka.
Even China, Poland, Luxembourg, the Netherlands, Singapore and Switzerland, which had been reluctant to join the agreement, ended up accepting it.
High-level officials explained that some of these nations that for now preferred not to join the agreement, have for years attracted large multinational corporations to the tax facilities they grant to taxpayers.
Canceling this attraction in the context of a slow and uneven economic recovery will have a substantial economic impact that will be added to that generated by the pandemic in tourism and economic development, they stated.
When reviewing the list of 130 countries that signed the agreement, it is observed that it was also welcomed by the Cayman Islands, Panama and Seychelles, which for years have had the recognized strategy of attracting international business with very low taxes.
In theory, by eliminating the incentives to transfer profits from one place to another, large corporations will pay taxes where they obtain their profits; However, the Independent Commission for the Reform of International Corporate Taxation, notes that the risk is that this collection will favor the countries of origin of the multinationals, the vast majority of which are in advanced economies such as the United States.
“The collection with the global tax will not have great advantages for countries located in Latin America and Africa that are not characterized by favoring the flourishing of large multinational companies,” they stated.
The truth is that details of the implementation of the global tax are yet to be known.
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