Washington DC: Deputy Secretary of State Wally Adeyemo looks forward to supporting the G7 countries in response to positive comments from France, Germany, Italy and Japan on the US Treasury’s proposed minimum global corporate tax of over 15%. ing. Domestic corporate tax law.
“In my opinion, we’re going to see a lot of unified support among the G7,” Adeemo told Reuters earlier this week, which will be held in London on June 4th. He added that this would take place at a face-to-face meeting of G7 finance ministers.
This tax rate is well below the Biden government’s proposed minimum tax rate of 21% on foreign income for US companies and a domestic corporate tax rate of 28%.
Corporate taxes for multinational companies are discussed in nearly 140 countries through the Organization for Economic Co-operation and Development (OECD), while G7 countries (US, Japan, Germany, UK, France, Italy and Canada) are multinational. Strong influence on the interim decision.
However, the reaction from the UK, the G7 presidency, which currently has a corporate tax rate of 19%, has become more cautious.
The US global minimum tax bill is expected to be a major debate at a preliminary meeting of G7 virtual finance leaders on Friday.
Adeyemo, a participant in the OECD tax talks, has made a broad international commitment of over 15% to build Congressional support for US corporate tax increases by bridging the gap between US and international tax rates. He said he expected it.
The US minimum tax hike said it would provide incentives for other countries to switch to US tax rates. “If we can get the world to say we’re willing to pay at least 15%, that gives us the potential. When the domestic call is over, return to the international call, ”Reuters quoted as saying.
Senate Finance Committee chairman Ron Wyden said he was encouraged by the progress of the financial negotiations.
The negotiators of the OECD tax talks are aiming to reach an agreement in principle this summer.
Adeyemo said there were many technical details to clear, so the final agreement may have to wait until the G20 summit in Rome at the end of October.
In the US, the G7 support a global tax of at least 15%