Tuesday, October 19

Sánchez joins the US and demands a global minimum rate for corporate tax: “There is competition that must be corrected”

“It is a progressive debate”


The president charges again against the technology companies, to which the new Google rate is already addressed: “In a pandemic they have greatly revalued their capitalization but compete in unequal conditions with other companies that do pay their taxes.

Pedro S
Pedro Snchez, President of the Government, after the meeting of the Council of Ministers.DAVID CASTRO

The Government not only advocates fiscal harmonization between autonomous communities; it also supports taxes that affect all countries of the world equally. Pedro Sanchez has defended “a minimum rate in corporate tax” in his appearance this Tuesday after the meeting of the Council of Ministers, in line with what was expressed the day before by the US Secretary of the Treasury, Janet Yellen.

The President of the Government has also taken the opportunity to link this position to the particular case of technology companies, such as Google (Alphabet) or Facebook, to which in Spain and other countries a fee is already directed to charge any activity of their business developed within the country (the so-called Google rate). These companies, however, have chosen to pass on that burden with surcharges to consumers.

“It fIt is essential that we address a minimum corporate tax rate on a global scale and the position of all these large digital platforms that during the pandemic have greatly revalued their capitalization on the stock market but that compete in unequal conditions with other corporations or companies that do pay their taxes, “said Snchez from Moncloa.

“I am glad that these types of debates are being opened,” said the PSOE leader, for whom “the debate on tax harmonization on a European and global scale it’s a progressive debate“, as he has expressed.” I am glad that the US has embraced that progressive economic agenda that the government of Spain has been defending for a long time, “Sánchez congratulated himself in this regard.

Yellen had declared this Monday the US intention to enact a minimum corporate tax for the entire planet, a very difficult task in the face of the different national tax regimes, some especially lax, not to mention those that are classified as tax havens.

“We’re working with G20 countries to agree on a minimum rate of corporate tax at the global level that can stop the race to the bottom, “wielded the Secretary of the Treasury of the Government chaired by Democrat Joe Biden.

Sanchez has limited the debate to the European Union, with implicit criticisms of the positions of some countries: “In the area of ​​the internal market there are countries that have corporate taxes in short … much lower. There is a competition that has to be correctedThe Netherlands, for example, is the regular headquarters on the continent for numerous international corporations.

Collection in Spain

According to the General State Budgets, the Government had a collection in 2020 of 22,355 million euros, after falling 13% compared to the previous year. The calculation of the Government in coalition of PSOE and United We Can is that this year the figure will rise to 25,465 million euros. Although the reform was not finally applied, this Executive has considered applying a minimum effective rate of 15% that guarantees the collection in this country, where generally the corporation tax is 25%.

Biden’s star plan to invest in infrastructure, endowed with around 2 trillion dollars (1.7 trillion euros) will be supported largely by a series of taxes on private companies, mainly through an increase in corporate tax from the current 21% to 28%. %. The rate path will be the reverse of the one given by Donald Trump, his predecessor in office, who reduced the tax from 35% to 21%.

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