Gandhinagar (India) (EFE) serious global indebtedness.
“Critical global issues such as the strengthening of the multilateral development banks and the adoption of coordinated climate measures and facilitating consensus on issues related to the growing indebtedness of low- and middle-income countries” will be some of the points to be discussed, said the India’s Finance Minister Nirmala Sitharaman in a televised address.
Yellen: US and India are close to reaching an agreement on corporate taxation
The US Treasury Secretary, Janet Yellen, stated that Washington and New Delhi are “close to reaching an agreement” on corporate taxation to guarantee the payment of taxes by multinationals in countries where they are active and guarantee a minimum rate of 15%. for corporation tax.
“I appreciate India’s interest in finalizing the historic global tax deal based on the two pillars of the inclusive framework” of the Organization for Economic Co-operation and Development (OECD),” Yellen said ahead of a bilateral meeting on the sidelines of the G20. with Indian Finance Minister Nirmala Sitharaman.
The remarks, made on the first day of the meeting of Group of 20 finance ministers and central bank governors, come amid efforts by the informal body to advance implementation of a global minimum tax on international profit to make multinationals pay appropriate rates and can compete on equal terms with small companies.
This is the so-called “inclusive framework” promoted by the OECD, based on two “pillars”.
The “first pillar”, set out in the July 2021 agreements and signed by more than 135 countries and jurisdictions around the world, representing more than 90% of the world’s gross domestic product (GDP), establishes the obligation that large companies , particularly in the digital sector, pay taxes where they are active, not only where they declare their physical headquarters, frequently chosen to avoid taxes.
In parallel, the “inclusive framework” gave rise to another commitment of the “second pillar” to establish a minimum rate of 15% in corporate tax and in today’s statement its signatories stressed that this is already a reality and “more than 50 jurisdictions are adopting the necessary measures for its implementation”.
Yellen also stressed to the media the importance of reforming the multilateral development banks to “unlock $200 billion over the next decade” in loans.
The meeting in Gandhinagar ends tomorrow
The meeting, which kicked off today and will end tomorrow in the Indian city of Gandhinagar, is the third for finance ministers and central bank governors of India’s G20 Presidency, and will be the last financial meeting until the leaders’ meeting in September. next.
More than half of the world’s 69 poorest countries are at high risk or in debt, according to the United Nations, while a quarter of middle-income countries are also at high risk of fiscal crisis.
Faced with this situation, the UN asked the G20 ministers last week to work on a pause in the payment of public debt, in addition to promoting a common framework between bilateral creditors, financial institutions and debtors, for economic recovery.
The willingness of China, a member of the group and the main global creditor, to restructure its debt is essential for many countries with liquidity problems.
The United States will also seek to increase financial assistance to Ukraine to face the war with Russia. However, India, which has decided from the outset to take a neutral position in the war, continues to try to prevent these discussions from eroding the group’s gains as a common economic forum.
The finance chiefs of the “Group of Twenty” are also trying to advance together in the implementation of a global minimum tax on international profit to make multinationals pay appropriate rates and can compete on equal terms with small companies.
The G20 urges all countries to apply their regulation of cryoactives
The Financial Stability Board (FSB), which is a member of the G20 countries, urges all countries in the world to apply the international regulation of crypto assets and stablecoins that it recommends.
The FSB today published its final recommendations for the regulation, supervision and surveillance of the crypto universe, a task entrusted to it by the G20 countries after the tensions that were seen in 2022 and at the beginning of this year in the crypto asset markets, such as the collapse of Luna of Terra.
The entry G20 Finance Ministers meet in India to reform multilateral banks was first published in EFE Noticias.