US expects G7 to support 15% global minimum corporate tax

The US expects the G7 to support the proposed 15% global minimum corporate tax

US Deputy Treasury Secretary Wally Adeyemo said he expected his colleagues in G7 countries to strongly support the 15% global minimum corporate tax rate proposed by Washington.

British Prime Minister Boris Johnson (centre) and British Foreign Secretary Dominic Raab (left) pose for a photo with delegates at the G7 Foreign Ministers Meeting held in London on May 5, 2021. Photo: AFP

Support from the G7 will help strengthen the consensus of the US Congress on the corporate tax bill.

“I think you’ll see a lot of support from the G7 in the development process,” Deputy Minister Wally Adeyemo told Reuters news agency on May 24 after France, Germany, Italy and Japan made positive comments. on the proposed 15% minimum US corporate tax.

Deputy Minister Adeyemo said that the G7’s support for a minimum corporate tax of 15% would likely be delivered at a video conference of G7 Finance Ministers in London on June 4-5.

Optimism about the G7 countries reaching a long-sought comprehensive agreement on taxing multinational companies and digital businesses has increased since last week when the US Treasury Department said the The agency will accept a global minimum corporate tax rate of 15% or higher.

This tax rate is much lower than the 21% minimum corporate tax rate proposed by the US President Joe Biden administration on foreign income of US businesses, and the tax rate of 21%. 28% proposed to apply to domestic enterprises.

Last week, the Financial Times reported that the G7 countries were close to reaching an agreement on corporate taxes on multinational companies. Meanwhile, negotiations between nearly 140 countries through the Organization for Economic Cooperation and Development (OECD) and the G7 countries (USA, Japan, Germany, UK, France, Italy and Canada) are having an impact. strongly influence multilateral decisions.

The UK – which holds the rotating presidency of the G7 – is imposing a corporate tax rate of 19%. Brother reacted cautiously to the proposed US minimum corporate tax. When asked if Britain would support Washington’s proposed 15% minimum corporate tax, British Prime Minister Boris Johnson shifted focus to taxing big tech companies like Alphabet and Facebook.

“Getting an international agreement on how to tax large-scale digital businesses is a priority and we welcome the US’s renewed commitment to reaching a solution,” he said.

The US’s proposed global minimum corporate tax is expected to be the main topic of discussion at an online preliminary meeting between the financial leaders of the G7 countries on May 28.