To prevent the profits of large companies from being passed on to tax havens, EU countries agreed on a global minimum tax last year. In Austria, according to the Ministry of Finance (BMF), legislation is being prepared – ie the drafting of corresponding legal provisions.
For the time being, however, there is no estimate of what additional income the local tax authorities can expect. According to the BMF, the amount of revenue from the introduction of this additional tax depends strongly on how many low-tax countries will introduce a national additional tax. There will be a revenue estimate when the domestic legal draft is available. This “should take place in the current year 2023”.
Agreement on minimum tax of 15 percent
In October 2021, more than 135 countries, accounting for more than 90 percent of global economic output, agreed on a common approach to adapting the tax system to the digital age. Above all, a minimum tax of 15 percent for companies with a minimum annual turnover of 750 million euros is planned, the introduction of which has in any case been initiated.
Tax reform affects 8,000 companies worldwide
Globally, this pillar was expected to generate annual revenues of approximately $220 billion (approximately €204 billion) – the total equivalent to nine percent of global corporate tax revenues. The Organization for Economic Co-operation and Development (OECD) had previously estimated that at 150 billion dollars (139 billion euros). The tax reform affects about 8,000 companies worldwide.
Former Austrian finance minister Gernot Blümel put the possible additional revenue for Austria in 2021 at 600 to 700 million. euros estimated. The EU Commission even spoke of three billion euros for the Alpine Republic, which was estimated as too high in this country. For the entire European Union, the EU Tax Observatory assumes an additional amount of almost 50 billion euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
