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The new tax framework proposed by the European Union will be more extreme than the global corporate tax plan promoted by the United States
The EU’s proposal for a new corporate tax framework covering the region will go further than the global corporate tax plan under discussion. Before the EU put forward this initiative, the United States proposed to set the global minimum corporate tax rate, and required large multinational companies to pay more taxes to the local governments where they actually operate, which accelerated the negotiation among 140 countries on this global tax reform issue. The EU’s supplementary proposal, called “business in Europe: income tax framework”, or befit, will create a single corporate tax rule and redistribute profits among Member States. The EU has been discussing corporate taxes for ten years without result. This proposal coincides with COVID-19’s increasing pressure on government spending, restoring public finances and solving the radical tax avoidance measures of big companies. Economic Affairs Officer