By Nandita Bose and Andrea Shalal
WASHINGTON (Reuters) – G7 leaders meeting in Britain will back US President Joe Biden’s proposal for a global minimum tax of at least 15% on corporations, the White House national security adviser said on Twitter on Friday. , Jake Sullivan.
The US Treasury in May proposed a global minimum corporate tax of at least 15% to try to end a downward spiral in corporate tax rates.
“America is rallying the world so that large multinational corporations pay their fair share so that we can invest in our middle class at home,” Sullivan tweeted.
By backing the measure, major economies aim to dissuade multinationals from shifting profits (and tax revenue) to low-tax countries, regardless of where their sales are made.
Today’s global tax rules date back to the 1920s and battle with multinational tech giants that sell services remotely and attribute much of their profits to intellectual property in low-tax jurisdictions.
US tech giants like Facebook (NASDAQ 🙂 and Amazon (NASDAQ 🙂 could benefit from the deal to create a 15% global minimum corporate tax rate if the final deal also eliminates increasingly popular taxes on digital services, according to the groups. industry pressure. https://reut.rs/359z1u1
The decision was expected after G7 finance officials endorsed a tax rate of at least 15% during a meeting on June 5. The US Treasury has said the G7 endorsement will give momentum to move negotiations toward a broader G20 financial meeting in July in Italy.
US Treasury Secretary Janet Yellen and her counterparts from Germany, Indonesia, Mexico and South Africa backed the move in a column published Wednesday by the Washington Post.
They said they were confident that the global minimum tax rate could eventually rise above 15%, citing “the ambition of the discussions so far.”
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