With legal tax loopholes for digital companies, China is campaigning for international tax reform. „There is a consensus that we need new rules,“ said China’s Finance Minister Liu Kun at the G20 meeting today in Fukuoka, Japan. Joint coordination was crucial to avoid double taxation.
US Treasury Secretary Steven Mnuchin also campaigned for international solutions to corporate taxation in Fukuoka: „A fragmented approach is not good for any of us,“ Mnuchin said. The basis for international taxation was to reach consensus.
The leading industrialized and emerging economies aimed to bring about fundamental solutions to international minimum taxes and the allocation of taxation rights at the meeting. The background is that digital companies such as Google and Facebook in particular are making significant profits worldwide, but in most countries they pay very little for their lack of physical presence.
