New global minimum corporate tax injects 125 000 million euros - The new global minimum corporate tax could mean an injection of 125,000 million euros to governments around the world.

The last G7 summit in Cornwall, UK, was not only a feast of sea shanty —a type of folk music sung by sailors from the region— and fluffy clouds of cotton toasted over the fire. The meeting also provided a crucial impetus for a new type of tax that could revolutionize international taxation.

The new global minimum corporate tax is a measure that has recently gained prominence in tax talks. In this sense, this measure would impose a non-binding minimum rate on multinational companies, in order to prevent them from fleeing to other countries with lower taxes.

This tax could also contribute 150,000 million dollars (about 125,000 million euros), according to Bloomberg information that quotes Pascal Saint-Amans, director of fiscal policy of the OECD. On the annual amount that this tax would entail, Saint-Amans has explained to the French channel BFM Business that"it does not suppose an anecdotal amount".

New global minimum corporate tax injects 125 000 million euros

"In a way," says Saint-Amans,"it is the end of the work of regulating globalization for greater tax justice." The figure he presented also includes "a revised version of existing U.S. measures on taxation of foreign profits known as GILTI," according to Bloomberg.

The G7 summit marked an important diplomatic and political step for fiscal measures, as leaders agreed to a minimum rate of at least 15%. That is what the US had supposedly proposed, a rate lower than the planned 21% proposal, but still in line with the US Treasury Department's proposal.

Saint-Amans has also referred to concerns that companies like Amazon might circumvent the tax due to their low profit margins, saying the OECD would specifically examine their cloud services, which enjoy a higher margin.

New global minimum corporate tax injects 125 000 million euros

Large technology companies and governments in several countries have supported the measure, which is a historic proposal. However, there is still a long way to go before it is effective. The measure will be presented to the G20 and then to the OECD. Countries like the US will also have to make legislation to officially enact the tax once it has been agreed, which can be tricky.

New global minimum corporate tax injects 125 000 million euros: And it is that as already reported, the more than likely opposition of the Republican Party to the measure, could even sink it.

"Why would we want to commit to doubling our global minimum tax? That's a very bad policy," Sen. Pat Toomey, a senior Republican on the Senate Banking Committee, recently told.

The proposed changes to U.S. tax laws have already caused a stir among political parties. Joe Biden wants to raise the corporate tax rate from 21% to 28% to offset spending on infrastructure, a proposal that has already elicited resistance from Republicans who see the increase as an insurmountable red line.

However, according to the figure cited by Saint-Amans, leaving behind the proposal of the global minimum could also mean leaving behind billions of euros in potential income.

New global minimum corporate tax injects 125 000 million euros

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Spaniards pay the most expensive electricity bill in Europe: up to 20% more expensive than in Germany, France or the Netherlands

The price of electricity in Spain continues to set highs since, on June 1, 2021, the new energy pricing entered into force, which applies time discrimination (with peak, flat and valley periods). Last Monday, June 14, the price of energy in Spain, in the central hours of the day, was by far the highest in Europe.

The average price of the light in said Monday, according to the OMIE (the operator of electricity market designated for the management of the daily market and intraday electricity in the Iberian Peninsula) was 88,47 €/MWh, reaching a maximum of 98,35 € between 20:00 and 21:00 hours and a minimum of 81,71 € between 15:00 and 17:00 hours.

From 14:00 to 15:00 hours, the price of electricity in Spain stood at €87.29/MWh. In those same central moments of the day, with data from the Spanish Electricity Network collected by the Information, the price of energy in other European countries was clearly lower:

• Netherlands: €50.22 / MWh.
• Germany: €50.89 / MWh.
• Belgium: €59.33 / MWh.
• Italy: €69 / MWh.
• France: 69 € / MWh.
• United Kingdom: €81.44 / MWh.

The situation has not improved. Quite the opposite. This Tuesday, June 15, the average price of electricity in Spain is 90,95 €/MWh, this means that the price of electricity today in Spain will be above the average that was marked during the Filomena storm (88,95 €/MWh). Between 19: 00 and 21:00 hours will arrive at a maximum price of 100 €/MWh. While, from 3: 00 to 5: 00 hours, the minimum was marked: 81.2 € / MWh. On the day of storm Filomena, the maximum was € 112.84 / MWh and the minimum was € 61.35 / MWh.

For several days now, from the Government of Spain, they are considering the possibility of advancing the valley hours (the cheapest). Currently, this period extends between 00:00 and 8:00 hours, and the intention of the Executive is to start 2 hours earlier, at 22: 00 hours.

The proposal, in an obviously unofficial way, was advanced via Twitter by the Minister of Consumption, Alberto Garzón. He noted that they were concerned about the prices of basic supplies for working families. "We continue to push for all measures that lower the electricity bill: as the unions and other actors have requested, it is necessary to bring forward the hour”, he explained.

In the same vein, the new secretary general of Unidas Podemos, Ione Belarra, said that, through the same social network, " this government must be in a permanent state of listening to citizens and be empathetic with families who have trouble paying for electricity. We thought it would be a good idea to advance the valley time to 22h from Monday to Friday as proposed by FACUA and we will request it from the CNMC”.

The response of the National Commission of Markets and Competition (CNMC) soon arrived, and was negative. The regulator assured that it was too early to attempt any variation, given that the new tariffs had just been introduced and had not given time to analyse the operation of the system.

However, as published on June 13 eldiario.es, the Government of Spain would have competence to advance the time stretch in which the price of electricity is lower without the CNMC.