SYDNEY, July 15 (Reuters) – Australian Treasurer Jim Chalmers expressed optimism on Saturday about progress on a long-awaited overhaul of worldwide company taxation at a gathering of Group of 20 (G20) nations in India.

“There’s been progress made over the years and we want to advance that progress further,” Chalmers informed ABC tv, referring to the assembly Monday and Tuesday of G20 finance ministers and central bankers.

More than 140 nations have been supposed to begin implementing subsequent 12 months a 2021 deal overhauling decades-old guidelines on how governments tax multinational companies. The guidelines are extensively thought-about outdated as digital giants like Apple or Amazon can e book income in low-tax nations.

But a number of nations have considerations a couple of multilateral treaty underpinning a serious aspect of the plan, and a few analysts say the overhaul is susceptible to collapse.

“This is a really important opportunity to make sure that we get the multinational tax arrangements right so that companies pay the tax where they make their profits,” mentioned Chalmers, who will attend with outgoing Reserve Bank of Australia Governor Philip Lowe.

“Countries like ours stand to be beneficiaries and that’s why we want to be part of it.”

The first a part of the two-pillar deal goals to reallocate taxing rights on about $200 billion in income from the largest and most worthwhile multinationals to the nations the place their gross sales happen.

The second pillar calls on governments to finish competitors on tax charges between governments to draw funding, by setting a world minimal company tax fee of 15% from subsequent 12 months.

Reporting by Sam McKeith in Sydney; Editing by William Mallard

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