(Washington) The U.S. Treasury said in a press release on Thursday that the Biden administration has proposed a “minimum” tax rate of 15% on the profits of multinational corporations for its partners in the OECD.
The press release explains that the Treasury is 15% “one floor” and that negotiations will continue with the goal of “ambitious” and “raising this rate”.
Negotiations are underway at the Organization for Economic Co-operation and Development (OECD) with Washington’s initiative to set a tax rate What is your tax bracket? on the profits of multinational corporations that are harmonious in different countries.
The OECD, which brings together 36 countries, wants to reach a principled global agreement on G20 finance on July 9 and 10, followed by a final meeting in October.
This is the first time the United States has officially proposed a rate.
From 12.5%, the rate in force in Ireland is up to 21%, with limits specified so far, especially with the support of France, Germany and the European Parliament.
“I doubt if we’re at 21%, but we’re at 21%, and I hope it’s possible,” said Oman of the OECD Center for Tax Policy and Administration in Pascal St. May 5.
This reform is to end tax competition between countries.
France has already stated that if negotiations in the OECD are successful, in the first half of 2022, in the presidency of the Union, it will adopt a European mandate on the issue.
The project will be led by the Biden administration, which seeks to raise their corporate tax to finance a massive investment plan.
In addition to the global minimum rate, this version negotiated by the OECD provides for each country to modulate corporate taxation based on profits regardless of their tax establishment.
This second point mainly targets digital companies that pay taxes that are unrelated to locally generated revenue and profits.