Austria Eyes $850 Million Windfall From G-7 Global Tax Deal

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Austria’s government is set to be on the winning side of a landmark agreement between the world’s richest major economies on how to tax some of the largest companies.

The European nation would receive 700 million euros ($849 million) in additional tax revenue each year if the deal is implemented in its current form, Finance Minister Gernot Bluemel told reporters on Friday.

Austria has delayed plans to cut its 25% tax rate on corporate profits to 21%, leaving the burden among the highest in the European Union. It also came under fire for introducing a levy on internet advertising revenue, targeted at some of the largest global tech companies, including Facebook Inc. and Alphabet Inc.

The Group-of-Seven deal may bring the tax policy that funds Austria’s generous welfare state closer to its global peers. The agreement still needs to be accepted by smaller nations, which may be more reluctant to give up on the extra revenue they get from offering global companies tax breaks.

Austria Eyes $850 Million Windfall From G-7 Global Tax Deal

“There will remain a certain level of tax competition among nations, but pushing rates to the bottom will no longer be possible,” Bluemel said.

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