The Organization for Economic Cooperation and Development (OECD) announced on Friday a global agreement to ensure that large companies pay a minimum tax rate of 15% and make tax evasion more difficult.
Treasury officials and tax experts have said that the global minimum tax would not require the implementation of a treaty and could be achieved in the conciliation bill because it is a voluntary agreement between countries to individually impose a minimum tax on the profits of corporations in abroad.
The United States has this minimum tax since the end of 2017, so it is a matter of raising the rate to comply with the agreement.
Treasury officials have said they view the global minimum tax as less controversial than a higher general corporate tax rate or a higher capital gains tax, because it puts the United States on a more competitive base with other countries.
The US Chamber of Commerce said it will closely review the details of the Biden administration’s proposals.
“We remain very concerned about the cumulative impact of the (global minimum tax) proposal and the tax changes that the administration is seeking as part of the reconciliation bill pending before Congress,” said Neil Bradley, chamber policy director, it’s a statement.
Yellen did not address how to implement another part of the agreement that seeks to renew taxes for large technology companies and other highly profitable multinational companies.
The so-called “Pillar 1” part of the tax deal would reallocate the tax rights of companies with more than $ 20 billion in annual revenue to countries where their products and services are sold for 25% of profits above a margin of 10 %.