The German parliament on Friday approved the implementation of a global minimum corporate tax, as part of an international deal to ensure large companies pay a minimum tax rate of 15%.
An important point of this deal, is that Germany can now collect taxes on profits made elsewhere. If Poland collects 10% tax, then Germany can collect the remaining 5%.
This means that governments aren’t competing for businesses anymore. Instead they are fighting amongst each other to figure out who is allowed which share of the newly found bounty.
Yes sir we charge a nominal monthly fee to keep your account active when there is less than $2000 of deposits per month.
Oh, you’d like to close your account? No problem, unfortunately we can’t do that over the phone but we’d be happy to help you with that in person at our head office in LEO.
exactly. I think all countries to impose a corp tax on their total profits and the corps can deduct any tax they pay somewhere else (if its not reinbursed or some other shenanigan shit) with a minimum of having to pay the percent for all bussiness done in that country. great side effect is it would stop the race to the bottom.
So in the future several enterprises will move to neighbouring countries like Poland or Czech Republic with less strict regulations?
An important point of this deal, is that Germany can now collect taxes on profits made elsewhere. If Poland collects 10% tax, then Germany can collect the remaining 5%.
This means that governments aren’t competing for businesses anymore. Instead they are fighting amongst each other to figure out who is allowed which share of the newly found bounty.
Sure till they run out of those, then they’ll go to space stations and artificial islands
It’ll be interesting to watch someone establish a bank in a space station.
Inevitable, probably.
Yes sir we charge a nominal monthly fee to keep your account active when there is less than $2000 of deposits per month.
Oh, you’d like to close your account? No problem, unfortunately we can’t do that over the phone but we’d be happy to help you with that in person at our head office in LEO.
Inevitably followed by space pirates…
I hope there are measures to prevent exploitative delocalization. Did they think about it?
If you do business there they can tax you… companies are free to profit exclusively off the citizens of the Cayman Islands if that’s their choice.
exactly. I think all countries to impose a corp tax on their total profits and the corps can deduct any tax they pay somewhere else (if its not reinbursed or some other shenanigan shit) with a minimum of having to pay the percent for all bussiness done in that country. great side effect is it would stop the race to the bottom.
It’ll be interesting to see how Google does when it voluntarily ceases doing business in Germany… and fires all its German employees.
There’s no chance. 30% of their revenue comes from EMEA
It might be cheaper to pay fines than taxes, though