According to the OECD, agreed changes to the international tax system have been agreed by 136 countries and jurisdictions, which account for more than 90 percent of global gross domestic product (GDP).
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According to the international community, the agreement will ensure that large companies pay a fair share of taxes wherever they do business and generate profits. The OECD estimates that, thanks to the agreement, states as a whole will receive additional tax revenues worth around $ 150 billion (approximately CZK 3.3 trillion) per year. The agreement should also lead to the transfer of taxes worth over $ 125 billion to countries where multinational companies generate profits, Reuters reported.
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The agreement was negotiated for four years, the last time being Ireland, Hungary and Estonia. Of the 140 countries involved in the negotiations, which according to the OECD represent 90 percent of world GDP, Kenya, Nigeria, Pakistan and Sri Lanka have not yet acceded to the agreement.
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“Our international tax system will be fairer and work better thanks to today’s agreement,” said OECD Secretary General Mathias Cormann. “It is a far-reaching agreement that ensures that our international tax system will serve its purpose well in a digitized and globalized world economy,” he added.
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European Commission President Ursula von der Leyen welcomed the agreement. “It’s a historic moment. It is a big step forward in creating a fairer tax system, “she said. “Requiring large companies to pay the right amount of taxes is not just a matter of public finances. It is above all a question of basic justice, “she added.
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US President Joe Biden responded positively to the agreement and supported its creation. “For decades, American workers and taxpayers have paid extra for a tax system that has rewarded multinational corporations for moving jobs and profits abroad,” he said. “This flight for lower taxes has not only harmed American workers, but has also put many of our allies at a competitive disadvantage,” he added.
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“Facebook has long called for a reform of global tax rules,” said Nick Clegg, Facebook’s vice president. “We realize that this (for us) could mean paying higher taxes, in different places,” he added. “The tax system must inspire public confidence while providing businesses with security and stability. We are glad that an international consensus is emerging, “he concluded.
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German Finance Minister Olaf Scholz also commented on the agreement. “Today we have taken another important step towards greater tax justice,” he said in a statement he provided to Reuters.
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However, some signatories doubt that the system will be in place by 2023. This date is considered unrealistic by the Swiss Ministry of Finance, which also calls for greater account to be taken of the interests of small economies. Doubts were also expressed by the Oxfam organization, according to which tax havens will not disappear. “When it comes to taxes, the devil is in the details, such as the dense network of exceptions,” said Susana Ruiz, who focuses on tax issues.
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