WASHINGTON- US Treasury Deputy Secretary Wally Adeyemo said he expects strong backing from G7 peers for Washington’s proposed 15 percent-plus global minimum corporate tax, which should help solidify support in the US Congress for domestic corporate tax legislation.
“My sense is that you’re going to see a lot of unified support amongst the G7 moving forward,” Adeyemo told Reuters on Monday after France, Germany, Italy and Japan made positive comments about the Treasury’s proposal.
That support may be voiced at an in-person meeting of G7 finance ministers in London on June 4-5, Adeyemo said.
Optimism about a long-sought comprehensive deal for how to tax the largest multinationals and digital services companies has increased since the Treasury last week said it would accept a global minimum tax rate of 15 percent or higher.
The rate is well below the Biden administration’s proposed 21 percent minimum rate for US companies’ overseas income and its 28 percent proposed domestic corporate tax rate.
The Financial Times on Thursday reported that G7 countries are close to agreement on the corporate taxation of multinational firms. While the talks are taking place among nearly 140 countries through the Organization for Economic Cooperation and Development (OECD), G7 countries — the United States, Japan, Germany, Britain, France, Italy and Canada — have a strong influence over multilateral decisions.
The reaction from G7 chair Britain, which currently has a 19 percent corporate tax rate, has been more guarded. Asked if Britain would support Washington’s 15 percent minimum proposal, Prime Minister Boris Johnson shifted the focus to taxation of large tech companies such as such as Alphabet Inc and Facebook Inc.
“Reaching an international agreement on how large digital companies are taxed is a priority, and we welcome the US’s renewed commitment to reaching a solution,” Johnson said.
