VENICE, July 9 (Reuters) – Finance ministers and central bankers from the group of 20 wealthy international locations will meet nose to nose on Friday for the primary time because the begin of the COVID-19 pandemic at a gathering in Venice the place company tax reform will prime the agenda.
The G20 is predicted to provide its political endorsement to plans for brand spanking new guidelines on the place and the way a lot corporations are taxed which had been backed final week by 130 international locations on the Paris-based Organisation for Financial Cooperation and Growth.
The deal envisages a worldwide minimal company revenue tax of at the very least 15%, a stage which the OECD estimates may yield round $150 billion in extra international tax revenues, however leaves a lot of the main points to be hammered out.
Officers say the two-day gathering in Italy’s historic lagoon metropolis will open a dialogue on the best way to put the OECD proposals into apply, with the purpose of reaching a ultimate settlement at a Rome G20 leaders’ summit in October.
The G20 members account for greater than 80% of world gross home product, 75% of worldwide commerce and 60% of the inhabitants of the planet, together with big-hitters United States, Japan, Britain, France, Germany and India.
If all goes to plan, the brand new tax guidelines ought to be translated into binding laws worldwide earlier than the tip of 2023.
Ministers could search assurances from the U.S. Treasury Secretary Janet Yellen that she will be able to win legislative approval for the proposals in a divided U.S. Congress the place Republicans and enterprise teams are combating Joe Biden’s proposed tax will increase on companies and rich Individuals. read more
Except for tax, ministers will focus on a worldwide financial restoration which officers from G20 president Italy informed reporters was vastly uneven, with rich Western international locations selecting up strongly whereas creating nations are left behind.
Worldwide Financial Fund chief Kristalina Georgieva delivered the identical message this week, saying there was a “harmful divergence” between rich and creating international locations as they search to recuperate from the COVID-19 pandemic.
The G20 will ask the IMF to allocate $650 billion of its reserve asset referred to as Particular Drawing Rights by the tip of August, with a suggestion that methods are discovered to make sure a major a part of the cash goes to international locations most in want.
Some delegations on the assembly could categorical considerations that rising inflation and rates of interest in the US may unbalance the worldwide economic system, G20 officers stated, although that is unlikely to look within the ultimate communique.
The G20 ministers and central bankers will meet from 1:15 p.m. to five:30 p.m. (1115-1530 GMT) on Friday and from 9:45 a.m. to five:15 p.m. (0745-1515 GMT) on Saturday, adopted by a closing information convention by the Italian presidency.
Aspect occasions embody a tax symposium on Friday and a local weather change convention on Sunday.
Reporting By Gavin Jones; Enhancing by Aurora Ellis
Our Requirements: The Thomson Reuters Trust Principles.