[ad_1]
The Biden administration has indicated that it will accept a global minimum tax of 15% on large multinational companies, in international talks aimed at increasing the revenues of companies operating across borders.
The United States is planning a review of the tax system, established in April, proposed applying a new sales tax based on each country to the overall profits of larger companies, including large U.S. technology groups, regardless of their physical presence in a given country.
U.S. officials have met this week with negotiators from countries participating in OECD talks to discuss what that minimum tax rate should be. The Biden administration had previously proposed 21%, according to the U.S. Treasury.
Treasury officials said they would continue to advocate a global minimum tax at the highest possible rate, but that 15% should be even.
The Biden administration’s proposal has been confronted with the backlash from congressional lawmakers as well as some OECD members. Ireland, which charges one of the lowest corporate tax rates in Europe at 12.5%, has said it will push for a global agreement on corporate taxation that fits its current tax rate and allows for a “ healthy and fair tax competition ”.
The White House has also proposed raising the national corporate tax rate to 21% today 28 percent.
Biden hopes that the promise of a more stable international tax system will stop the proliferation of national digital taxes and break the mold of tax evasion and profit shifting.
Washington has threatened to impose tariffs on countries such as France, the United Kingdom, Italy and Spain, among others, for digital taxes that require U.S. technology companies to pay.
If the US plan were accepted, other countries could increase the revenues of large US technology groups and other multinationals that have operated in their jurisdictions but have paid few corporate taxes.
[ad_2]
Source link
