The European Union (EU) would rake in nearly € 170 billion in additional tax revenue this year if the minimum global corporate tax (CIT) rate, currently negotiated under the aegis of the OECD, were set. at 25%, according to a study published on Tuesday by the European Tax Observatory. In this case, the EU as a whole would see CIT-related revenues swell from around € 340 billion to € 510 billion for 2021, an increase of 50%.
Germany would collect 30 billion, France 26 billion, Belgium 19 billion, Spain 12.4 billion and Italy 11 billion. Even Ireland, which has applied one of the lowest corporate tax rates in the EU of 12.5%, would stand to gain from such an increase in the tax rate: Dublin would get 14 billion euros. .
“There is no reason to stop at 15 or 17%”
On the other hand, if the rate retained in the context of the current negotiations were 15%, i.e. the floor proposed by American President Joe Biden, the gain for the EU would be no more than 50 billion euros, and for the France of 4.3 billion. This is why “there is no reason to stop at 15 or 17%,” said economist Gabriel Zucman, director of the Observatory, noting that 15% “is a ridiculously low rate” by compared not only to the current world average, which is 22%, but to the rates practiced by the G7 countries, which are “well above”.
Co-funded by the European Union and hosted at the Paris School of Economics, the European Tax Observatory is responsible for producing studies on taxation and formulating proposals. Its website, put online this Tuesday, provides a simulator so that everyone can “take hold of this question of taxation”.
“Every penny counts”
“The launch of the European Taxation Observatory represents another important step on the road to fairer taxation”, for his part welcomed the Commissioner for the Economy, Paolo Gentiloni, during a press conference in Brussels. “The fight against tax evasion, tax avoidance and aggressive tax optimization is a priority for the Commission and for me personally,” he said.
Europe has made progress towards greater fiscal transparency, under the pressure in particular of journalistic investigations, in the context of “the post-pandemic recovery and given the massive investments required in the field of ecological and digital transition”, pointed out assert the Commissioner. However, “every penny counts for state purses,” he said.