The United States Treasury Department has proposed in its meeting with the Steering Group of the Inclusive Framework on base erosion and profit shifting (BEPS) that the global corporate minimum tax rate should be at least 15 per cent. The rate is, however, lower than the 21 per cent minimum rate the US has proposed for overseas earnings of US corporations.

The US Treasury noted 15 per cent is a floor and that discussions should continue to be ambitious and push that rate higher.

The meeting was part the Organisation for Economic Cooperation and Development (OECD)/G20 international tax negotiations. Officials from the Office of Tax Policy at the US Treasury participated in the meeting.

The US Treasury said its officials were heartened by the positive reception to its proposals and the unprecedented progress being made towards establishing a global corporate minimum tax.

In the meeting, the US also expressed its belief that the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of the 21st century global economy.

“It is imperative to work multilaterally to end the pressures of corporate tax competition and corporate tax base erosion.”

The US Treasury reiterated that with the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments.

The US Treasury made clear that a global corporate minimum tax rate would ensure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and would spur innovation, growth, and prosperity while improving fairness for middle class and working people.


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