Political battle on corporate tax needed against reticent states such as Malta, France says

Asked about a G7 initiative for a minimum corporate tax rate of 15%, France’s junior minister for European affairs, Clement Beaune said that within the European Union, Ireland was the most hostile to the principle of a minimum tax and taxation of internet companies, and to a lesser degree Cyprus and Malta.

The Maltese Government has repeatedly said that it would not budge on the issue, saying that taxation was a matter of national competence. The Opposition has also supported this stance, which allows Malta to tax international companies operating in Malta at favourable rates.

In an interview with French financial daily Les Echos, Beaune added that the Netherlands was not opposed to the principle but will be demanding about its implementation.

“The European Union is blocked because of the unanimity rule. When there is a legal blockage, we need a political battle … given the U.S. position and the global agreement that we hope for in July, this will put a lot of political pressure on the reticent member states,” he said.

via Reuters