Finance Committee unanimously for global corporate minimum tax

2023-12-05 23:56:48

On Thursday evening, the National Council’s Finance Committee unanimously gave the green light for the new Corporate Minimum Taxation Reform Act (MinBestRefG). The law regulates the national implementation of the global corporate minimum tax of 15 percent and is intended to affect large multinational corporate groups. Essentially, this is the implementation of an EU directive.

The majority of the advantages that come with shifting profits to tax jurisdictions with no or very low taxation should be abolished, said Finance Minister Magnus Brunner (ÖVP), according to parliamentary correspondence.

The law for the global minimum tax, which 139 countries have agreed on, is intended to ensure greater international tax fairness. The two-pillar model developed by the Organization for Economic Cooperation and Development (OECD) envisages a redistribution of taxation rights in the first pillar and a globally valid, effective taxation of at least 15 percent for large multinational corporations with at least 750 in the second pillar million euros in consolidated sales per year.

Specifically, business units of a group of companies located in Austria are subject to the minimum tax if the annual turnover of the parent company is above the limit of 750 million euros in at least two out of four of the previous financial years.

Many questions would only arise in practice, said FPÖ MP Hubert Fuchs in the Finance Committee, according to parliamentary correspondence. Finance Committee deputy chairman Kai Jan Krainer (SPÖ) questioned the Ministry of Finance’s expected additional revenue of 100 million euros annually from 2026. By means of an amendment, technical changes to the Corporate Code in the area of ​​the assessment of deferred taxes in financial statements were taken into account, writes the parliamentary correspondence.

1701825728
#Finance #Committee #unanimously #global #corporate #minimum #tax

Leave a Replay