Business lobbyists and Republican lawmakers warn that doing so will make American companies less competitive and more overseas than international companies.
Treasury Secretary Janet L. Yellen and other senior government officials will introduce basic tax rates on foreign interests in other countries to minimize disadvantages to American companies and move businesses to lower tax countries. He said it was unlikely.
She described the agreement as “important” and “unprecedented.”
“The global minimum tax will end competition to the bottom of corporate taxes and ensure the fairness of the middle class and workers in the United States and around the world,” she said in a statement. The minimum tax also helps the world economy prosper by leveling the competitive arena and encouraging countries to compete on a positive basis, such as labor education and training, investment in research and development and infrastructure. It will help. “
Seven delegations representing the United Kingdom, Canada, France, Germany, Italy, Japan and the United States negotiated late Friday, revealing how the new tax system would work and the wording of the statement.
France, which promoted tax rates above 15%, wanted to be flexible in responding to higher tax rates. The United States is calling on European countries to eliminate digital service taxes, and the administration says it is unfairly targeting US tech companies. France, Italy and the United Kingdom are resisting waiving these taxes until the agreement is completed and enforced. This process can take up to four years.
A joint statement, or communiqué, released on Saturday suggested that digital taxes would be maintained for the foreseeable future.
“We will provide appropriate coordination between the application of the new international tax rules and the elimination of all digital service taxes on all businesses and other related similar measures,” the statement said. ..
Global tax treaties achieved between G7 countries
Source link Global tax treaties achieved between G7 countries