The US proposal to establish minimum taxation of corporate profits internationally has been favorably received by its French and German partners, their respective finance ministers have indicated in the last 24 hours.
In an interview with Bloomberg TV late in the morning on Wednesday, April 7, Bruno Le Maire announced that he would like to introduce such a tax ” as soon as possible »
France would remain open though, defending a minimum rate of 12.5% within the framework of the ongoing negotiations at the OECD. ” To increase this figure »Said Bruno Le Myre, defending the United States Possibly As a high floor, the Biden administration can increase its corporate tax from 21% to 28% and levy a minimum tax of 21% on U.S. business income earned abroad.
These measures should cover the public infrastructure expenditure provided for the $ 2,200 billion to $ 2,300 billion investment plan currently under discussion.
“We believe that this subject of a minimum tax is absolutely critical for efficiency and fairness in international taxation. », Assured of the French economy, which began discussions with Janet Yellen, Secretary of the American Treasury
Good level of minimum corporate tax rate.
Because the introduction of a 12.5% rate – which corresponds to Ireland, one of the ten countries in the world that offers such low taxation – appears to say the least inadequate on the G20 scale , Where according to the average CIT NGO Tax Foundation, the rate would already be above 27%.
The United States, which has not specified the exact desired rate, hopes to obtain an agreement with its G20 partners at the next meeting of finance ministers on 9 and 10 July.
On the German side, Finance Minister Olaf Schulz said yesterday that he ” Now realistic to reach an agreement this year […] With better taxation of digital economy »
Gafa tax refund
In order to find a shared base with its partners, Washington will indeed have to move forward on the international taxation issue of Gaffa currently under discussion at the OECD, and Bruno Le Mayer hopes to see it this summer as well.
Rejected by Donald Trump – who threatened France to impose additional customs duties after taxing the digital giants – its deployment is now supported by the Biden administration.
For once, the United Kingdom has been aligned with the European position. According to financial Times, London made it clear that two files of taxation of corporate tax and Gaffa must be combined to reach an international agreement.
Therefore the possibility of such an agreement is clear at the diplomatic level. It would still be necessary to agree on the level of taxation that satisfies both the great powers and the developing economies, and that “minimum” taxes come into practice.
In the United States, in particular, such an international agreement would have to be approved by Congress, far from winning. financial Times. Raising taxes on American companies is one thing for American recovery, allowing foreign countries to impose more tax on these companies, Dan Needle, the tax partner of law firm Clifford Chance, tells the Daily.