WASHINGTON (Reuters) – Wealthy G7 democracies are expected to back Washington’s proposal for an ambitious global corporate minimum tax when their leaders meet this week in Britain, a U.S. Treasury official said on Wednesday.
The official said in an emailed statement that the Treasury expects meetings of the Group of Seven finance ministers on Friday and Saturday in London to provide momentum to move global corporate tax talks toward a further financial meeting. wide of the G20 in July in Italy.
Full support is expected at the culmination of the G7 meetings with the leaders’ summit, the official added.
The U.S. Treasury in May proposed a global minimum corporate tax of at least 15% to try to end a downward spiral in corporate tax rates and deter multinational companies from shifting their profits to countries that are tax havens.
The proposed minimum is lower than the Biden administration’s own proposals to increase the domestic corporate tax rate to 28% and impose a minimum tax of 21% on foreign profits made by US companies.
Treasury Undersecretary Wally Adeyemo told Reuters in late May that he expected strong support from G7 countries for the US minimum tax proposal and said it would help solidify support for Biden’s tax plans. among American legislators.
Several other G7 officials have raised expectations for meetings of finance ministers in London, the group’s first face-to-face meetings since the COVID-19 pandemic turned the meetings virtual last year.
German Finance Minister Olaf Scholz told Reuters in an interview that he expects the group to make “significant progress” on corporate tax issues, including the thorniest problem of agreeing how to tax large global digital services companies like Facebook. (NASDAQ :), Amazon .com (NASDAQ :), Alphabet (NASDAQ 🙂 Inc by Google, Apple Inc (NASDAQ 🙂 and Microsoft (NASDAQ :).
Several countries have imposed unilateral taxes on digital services targeting these companies, raising threats of retaliatory tariffs from the United States.
The United States has insisted that any tax regime for these companies does not discriminate against US companies and that all taxes on individual digital services are prohibited. Instead, he has proposed targeting the 100 largest and most profitable companies to pay more taxes in the countries where they do business, regardless of their industry classification and business model.
British Finance Minister Rishi Sunak told Reuters on Wednesday that the US plan to target the top 100 companies could work, but said big tech companies should be part of this group and pay more taxes where they operate. .
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