US proposes to implement 15 percent minimum corporate tax
The US government has proposed to the other member states of the OECD a tax rate of ‘at least’ 15% on the profits of multinationals. This was announced by the Treasury on Thursday.
However, The Washington ministry stresses that 15% is a ‘lower limit’ and that negotiations are continuing with the objective of being ‘ambitious’ and ‘increasing the tariff’, according to the communication.
At the initiative of the US, discussions have been going on at the Organization for Economic Cooperation and Development (OECD) about harmonizing the taxation of multinationals. The aim is to reach an agreement on principle against the G20 finance ministers ‘ meeting on 9 and 10 July.
The US had initially advocated a rate of 21 percent, a track that received support from Germany and France. Now it seems Washington is slowing down a bit. However, the new proposal is still higher than 12.5%, the previously raised rate currently applied in Ireland.
The main aim is to ensure that multinationals, and in particular the big tech giants, contribute more to public finances. They are suspected of escaping taxes by making convenient use of the different tax regimes in countries.
President Joe Biden’s government hopes that a stronger fiscal contribution from large corporations can help finance the massive investment plan to relaunch the US economy after the coronavirus crisis.