At a Group of 20 (G-20) conference in India on Saturday, Australian Treasurer Jim Chalmers expressed hope about progress on a long-awaited global corporate tax overhaul.
“There’s been progress made over the years and we want to advance that progress further,” referring to the G-20 finance ministers and central bankers gathering Monday and Tuesday. More than 140 countries were due to start implementing a 2021 accord reforming multinational business tax regulations next year. Digital titans like Apple and Amazon can record profits in low-tax countries, making the regulations archaic.
But numerous countries have misgivings about a global treaty backing a crucial part of the plan, and some analysts fear the revamp is at risk of collapse.
Chalmers and outgoing Reserve Bank of Australia Governor Philip Lowe will attend. “This is a really important opportunity to make sure that we get the multinational tax arrangements right so that companies pay the tax where they make their profits,” Chalmers said.
“Countries like ours will benefit, so we want to be involved.”
The first component of the two-pillar pact reallocates taxes rights on around USD 200 billion in income from the biggest and most lucrative companies to the nations where their sales occur.
From next year, states must set a global minimum corporation tax rate of 15% to attract investment, according to the second pillar.