Europe approves a minimum tax of 15% on the profits of multinationals

The leaders of the 27 European Union countries unanimously approved the imposition of a minimum 15% tax on the profits of multinationals at a summit in Brussels on Thursday evening after Hungary and Poland withdrew their objections.

This new measure should come in in force on December 31, 2023.

The consent of the 27 countries was necessary for the enactment of this decision, which puts in a historic agreement reached last year, under the aegis of the Organization for Economic Co-operation and Development, on 140 countries to achieve greater tax justice in the world.

But the approval of this project has been delayed after being held up since the beginning of the year by Warsaw and then by Budapest, which have used it, together with other dossiers, as a pressure card in their negotiation with Brussels to get the European Union’s approval of two economic recovery plans that give them billions of dollars in subsidies.

After the European Union approved the recovery plans for Hungary and Poland, the two countries withdrew their objections to this tax, as well as several other files, including the release of financial aid to Ukraine for the year 2023 equal to 18 billion euros.

French President Emmanuel Macron, who has been in at the forefront of taxation, he welcomed “a big step forward for all who hold fast to tax justice”.

The decision was also welcomed by German Chancellor Olaf Scholz, who said: “We are realizing one of my dearest projects in Europe, impose a minimum tax on companies globally”.

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