SB 104-06: Global Corporate Taxation Act (Passed)

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AN ACT
To tax large multinational organizations and to promote a global tax overhaul


Be it enacted by the Senate of the Republic of Atlasia assembled

Section 1. Title

This legislation may be cited as the Global Corporate Taxation Act.

Section 2. Definitions

(a) Global Intangible Low-Taxed Income (GILTI).—The term 'Global Intangible Low-Taxed Income' (GILTI) is a category of income (from intangible assets such as patents, trademarks, and copyrights) that is held abroad by Atlasia-controlled international corporations.

(b) International Company.—The term 'International Company' is a corporate organization that owns or controls the production of goods or services in at least one country other than its home country.

Section 3. Global Minimum Tax

(a) A global minimum tax of 21% shall be levied on international companies, whose annual global revenue (GILTI) meets or exceeds $20 billion, for goods and services sold abroad.

Section 4. Support for G7 Finance Ministers and Central Bank Governors Communiqué

(a) The Republic of Atlasia officially endorses the framework outlined by the June 2021 G7 Finance Ministers and Central Bank Governors Communiqué to address "the tax challenges arising from globalisation and the digitalisation of the economy and to adopt a global minimum tax."

Sponsor: Scott

The gentleman from Wyoming is recognized.

[The world will shine with light in our nightmare]

Unfortunately, it did not occur to me until writing my advocacy that the tax agreed to by the G20 Summit yesterday doesn't go into effect until 2023. I will amend the bill to reflect this change, as well as to lower the rate to 15% as well as the threshold for paying the rate in order to reflect the newly approved plan.

So, financial ministers at the G20 Summit voted to approve a 15% minimum global tax on multinational corporate profits and to shift where some are collected to fit the modern digital economy. This will deter these multinational companies from avoiding taxation by shifting their profits to low-tax countries. This new tax system has the support of 132 countries. However, I would like to make a personal appeal to President Sev for when he reads these threads, that international pressure must be placed on Ireland and Hungary, which are low-corporate tax countries that oppose the new system.

Section 3. Global Minimum Tax

(a) Starting in 2023, a global minimum tax of 21% 15% shall be levied on international companies, with the exception of financial institutions and extractives, such as oil, whose annual global revenue (GILTI) meets or exceeds $20 billion $890 million, for goods and services sold abroad.

Members have 24 hours to object.

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Sorry - hearing no objection, the amendment is adopted.

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My disdain for international business is well known but I would be interested in knowing the basis for the exceptions for finance as such? Extractives makes sense on the surface since the location of the resources dictates where you go to a substantial extent, but finance is less obvious and I would be keen to know the answer. Is it concerns about restricting the flow of capital and the detrimental effects that might have economically?

I would hazard a guess that that's why financial services are exempt, yes. I don't want to inadvertently create special exemptions other than what the G20 countries approved, and those are the only two goods or services that are exempt from the plan.

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Since the President has expressed skepticism toward needing the GM on the immigration bill, I would argue the same for this too, really. As a general rule, events that happen in RL also happen in-game unless the GM says otherwise. For instance, George Floyd and Jacob Blake were both declared alive and well as a result of past police reforms. On the other hand, the Texas power crisis was as bad in-game as it was IRL. I understand that Peanut might be busy and I don't want the game to distract from real-life obligations, but I also don't like keeping legislation on the floor for too long.

So we can give Peanut a few days to give us his input and if he's not able to, we'll just assume the dynamics of the G20 Summit apply in-game as well, with Ireland and Hungary being our two targets foreign policy-wise to pressure into adopting this tax and joining the 130 other countries that have already signed on.

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The President is free to have his opinion, but last I heck we had separate co-equal branches of government and while he is free to state his opinion, the Senators are free to disagree on what should require such feedback.

I would also point out that we have the ability to do estimates ourselves as I previously posted in the other thread.

I'm not too worried about revenue estimates at this time, since the tax doesn't go into effect for another year and a half. I think here, whether the G20 Summit adopted these rules or Ireland and Hungary did not isn't information that necessarily needs GM input. Atlasia should be assumed to be part of G20 as the US is since we've adopted all prior treaties. So I don't think it's veering on the GM's autonomy too much to assume that other countries have signed on to the deal.

I make exception to upcoming events like the Israeli election, which the GM can and is using to override real events that should affect our policy.

[The world will shine with light in our nightmare]

Opening a final vote in 24 hours without objection or GM feedback.

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I believe the bill in its current form is fine. Unless opponents of this bill introduce their own plan - certainly a more productive move than calling your opponents spooky scary socialists - this bill deserves an up-or-down vote.

As such, I am invoking a motion to end debate. As the President said, this really comes down to whether you support tax havens or not. If you don't have a plan to improve the bill, then there's no point continuing debate.

I motion for cloture. Senators, please vote Aye, Nay, or Abstain.

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Aye

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Okay I see what happened here.

If an amendment is offered to add extra clarification, I don't think that is overly problematic. Since this is a tax that won't even be implemented for a while, we don't necessarily need to rush. I am confident that the Senate can come to an agreement that works for everyone.

It is a huge pet peeve of mine when everyone wants to submit an amendment after being told that a vote is about to start.

Anyway. Ending the cloture vote.

[The world will shine with light in our nightmare]

Friendly.

Senators have 24 hours to object, after which we will move to a final vote.

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Hearing no objection, the amendment is adopted and a final vote is now open. Senators, please vote Aye, Nay, or Abstain.

AN ACT
To tax large multinational organizations and to promote a global tax overhaul


Be it enacted by the Senate of the Republic of Atlasia assembled

Section 1. Title

This legislation may be cited as the Global Corporate Taxation Act.

Section 2. Definitions

(a) Global Intangible Low-Taxed Income (GILTI).—The term 'Global Intangible Low-Taxed Income' (GILTI) is a category of income (from intangible assets such as patents, trademarks, and copyrights) that is held abroad by international corporations incorporated in Atlasia.

(b) International Company.—The term 'International Company' is a corporate organization that owns or controls the production of goods or services in at least one country other than its home country.

Section 3. Global Minimum Tax

(a) Starting in 2023, a global minimum tax of 15% shall be levied on international companies, with the exception of financial institutions and extractives, such as oil, whose annual global revenue (GILTI) meets or exceeds $890 million, for goods and services sold abroad.

(a) A global minimum tax of 21% shall be levied on international companies, whose annual global revenue (GILTI) meets or exceeds $20 billion, for goods and services sold abroad.

Section 4. Support for G7 Finance Ministers and Central Bank Governors Communiqué

(a) The Republic of Atlasia officially endorses the framework outlined by the June 2021 G7 Finance Ministers and Central Bank Governors Communiqué to address "the tax challenges arising from globalisation and the digitalisation of the economy and to adopt a global minimum tax."

[The world will shine with light in our nightmare]

Aye

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This bill has enough votes to pass. Senators have 24 hours to change their final vote.

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Vote on Final Senate Passage of the Global Corporate Taxation Act:

Aye (13): Scott, Weatherboy, AGA, FalterinArc, Ishan, wxtransit, Spark, DTC, KoopaDaQuick, Jimmy7812, Joseph Cao, Kuumo, OBD
Nay (1): DeadPrez
Abstain (0):

Didn't Vote (4): North Carolina Yankee, Talleyrand, MB, Pericles

This bill has passed the Senate and is sent to the President for executive action.

[The world will shine with light in our nightmare]

AN ACT
To tax large multinational organizations and to promote a global tax overhaul


Be it enacted by the Senate of the Republic of Atlasia assembled

Section 1. Title

This legislation may be cited as the Global Corporate Taxation Act.

Section 2. Definitions

(a) Global Intangible Low-Taxed Income (GILTI).—The term 'Global Intangible Low-Taxed Income' (GILTI) is a category of income (from intangible assets such as patents, trademarks, and copyrights) that is held abroad by international corporations incorporated in Atlasia.

(b) International Company.—The term 'International Company' is a corporate organization that owns or controls the production of goods or services in at least one country other than its home country.

Section 3. Global Minimum Tax

(a) Starting in 2023, a global minimum tax of 15% shall be levied on international companies, with the exception of financial institutions and extractives, such as oil, whose annual global revenue (GILTI) meets or exceeds $890 million, for goods and services sold abroad.

(a) A global minimum tax of 21% shall be levied on international companies, whose annual global revenue (GILTI) meets or exceeds $20 billion, for goods and services sold abroad.

Section 4. Support for G7 Finance Ministers and Central Bank Governors Communiqué

(a) The Republic of Atlasia officially endorses the framework outlined by the June 2021 G7 Finance Ministers and Central Bank Governors Communiqué to address "the tax challenges arising from globalisation and the digitalisation of the economy and to adopt a global minimum tax."

Senate of the Republic of Atlasia
Passed 13-1-0-4 in the Atlasian Senate assembled,

Scott, President pro tempore