The
Group of Seven (G7) advanced economies agreed on Saturday to
back a minimum global corporate tax rate of at least 15% and the
focus now shifts to the G20 countries for a wider agreement on
the new tax proposals.
Analysts say the tax deal wouldn't be of major impact unless
it's agreed with tax-haven countries. The Irish economy for
instance has been booming with the influx of billions of dollars
in investment from multinationals due to lower taxes.
Shares of Facebook, Amazon.com, Apple, Microsoft and
Google-parent Alphabet were all down between 0.4% and 0.7%.
Europe's tech stocks index was flat.
"The details of the implementation are still to be ironed out
and potentially further watered down," said Marija Vertimane,
senior strategist at State Street Global Markets.
Dublin, which has resisted European Union attempts to harmonize
its tax rules, is unlikely to accept a higher minimum rate
without a fight.
"I would treat the current proposal as a small positive for the
market," Vertimane added pointing to levies being lower than
what was initially discussed.
The G7's proposals are seen targeting technology companies that
sell services remotely and attribute much of their profits to
intellectual properly held in low-tax jurisdictions.
"...the immediate market implications are likely to be minimal,"
said Ian Williams, economics & strategy research analyst at Peel
Hunt.
"No G7 nation currently charges that low a rate and the details,
including agreement from numerous smaller countries, require
plenty of work."
(Reporting by Thyagaraju Adinarayan and Sagarika
JaisinghaniEditing by Rachel Armstrong, William Maclean and
Bernadette Baum)
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