German Finance Minister Christian Lindner said Friday that Germany’s goal is implementing the second pillar of the global minimum tax deal and that further suggestions should not be addressed until the first pillar is agreed upon
Christian Lindner, the German minister of finance, stated on Friday that the country’s objective is to implement the second pillar of the global minimum tax agreement and that additional suggestions should only be considered once the first pillar is resolved.
A so-called “first pillar” of the tax aims to reallocate taxing rights on approximately $200 billion in corporate profits to the countries where the companies conduct business. The tax primarily targets digital behemoths based in the United States.
The United States has threatened retaliatory tariffs against European nations if the first pillar, currently stalled in negotiations, is implemented.
In the interim, nations are executing the second component of the international minimum tax agreement.
Governments can levy an additional tax on revenues earned in countries with lower tax rates to ensure that corporations with revenues exceeding 750 million euros ($800 million) pay a minimal rate of 15% globally.
The minister stated that the German government is “extremely skeptical” of new components of a global tax agenda as negotiations on the first pillar continue.
“Our focus must be on executing our prior efforts,” Lindner declared in Stresa, Italy. “Overloading the global tax policy agenda would only result in us achieving less than possible.”