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The Biden administration has stated that it will accept a 15% global minimum tax rate for large multinational companies in international negotiations, with the aim of increasing the income of multinational companies.
The U.S. plans to reform the tax system, Depart in April, He proposed to impose a new tax on the global profits of the largest companies, including large US technology groups, based on sales in each country, regardless of their actual status in a particular country.
US officials have met with negotiators from countries participating in the OECD negotiations this week to discuss what the minimum tax rate should be. According to the US Treasury Department, the Biden administration had previously proposed a 21% proposal.
U.S. Treasury officials said that they will continue to advocate the highest possible tax rate to levy the world’s lowest tax rate, but the lowest tax rate should be 15%.
The Biden administration’s proposal was suppressed by members of Congress and some members of the OECD. Ireland is one of the countries with the lowest corporate tax rate in Europe, at 12.5%, and it said it will promote a global corporate tax agreement to adapt to the current low tax rate and allow “healthy and fair tax competition.”
The White House also proposed to increase the domestic corporate tax rate from the current 21% to 28%.
Biden hopes that the establishment of a more stable international tax system can prevent the spread of national digital taxes and break the pattern of tax avoidance and profit shifting.
Washington threatened to impose tariffs on countries such as France, the United Kingdom, Italy, and Spain, requiring them to pay digital taxes to US technology companies.
If the U.S. plan is accepted, other countries will be able to increase the income of large U.S. technology groups and other multinational companies that operate under their jurisdiction but pay very little corporate tax.
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