This is the first time that the United States has formally presented a rate. The Biden administration has proposed to its partners at the Organization for Economic Co-operation and Development (OECD) to set 15% ” at least “ the tax rate on the profits of multinationals, said Thursday, May 20, the US Treasury in a press release.
The Treasury points out that 15% “Is a floor” and that the discussions will continue with the objective of being ” ambitious “ and “To increase this rate”, details the press release.
Negotiations are underway at the OECD, at the initiative of Washington, in order to set up a tax rate on the profits of multinationals which is harmonized in the various countries. The OECD, which brings together 36 countries, wants to obtain a global agreement in principle at the G20 Finance on July 9 and 10, then at a final meeting in October.
Thresholds ranging from 12.5% to 21%
Thresholds ranging from 12.5%, the rate in force in Ireland, to 21%, supported in particular by France, Germany and the European Parliament, had so far been mentioned. “Will we be at 21%, I doubt it, but will we be at a rate that would approach 21%, I am hopeful that this will be possible”, said the director of the OECD Center for Tax Policy and Administration, Pascal Saint-Amans on May 5.
The reform aims to put an end to tax competition between countries. If the negotiations at the OECD are successful, France has already said that it would adopt a European directive on the subject in the first half of 2022, during the French presidency of the Union.
The project is led by the Biden administration, which seeks to raise their corporate taxation to finance a massive investment plan.
In addition to a world minimum rate, this reform negotiated by the OECD provides for modulating corporate tax according to the profits made in each country, regardless of their tax establishment. This second point is aimed in particular at digital companies, which pay taxes often unrelated to the income and profits they generate locally.
