Bruno Le Maire, April 1, 2021 in Geneva. – AFP
“A comprehensive agreement on international taxation is now within reach” after a US proposal for a minimum corporate tax rate, said Tuesday the French Minister of the Economy Bruno Le Maire, calling to “seize this historic opportunity”.
“We welcome the United States’ support for minimum corporate tax taxation. We also hope to be able to move forward with (Treasury Secretary) Janet Yellen on the taxation of digital services to reach a global agreement at the level of the OECD next summer ”, added Bruno Le Maire in a statement to the AFP.
On Monday, Minister Joe Biden explained that the United States was ready to move forward with its G20 partners towards adopting a minimum tax rate for companies that could “end the race” at least- saying fiscal. Germany welcomed this progress, and the International Monetary Fund also declared itself in favor of a reform of international taxation to adapt it in particular to the digital age.
A global minimum rate
While the negotiations surrounding this reform, carried out under the aegis of the OECD, had failed in the autumn because of the American blockage, the change in attitude of the new administration nourishes the hope of an agreement at the beginning of summer. The OECD will do its best to get an agreement on the taxation of multinationals during the G20 Finance on July 9 and 10, one of its officials said in early March.
The reform of international corporate taxation concerns two aspects: the introduction of a world minimum rate, which could be 12.5%, and a system aimed at modulating corporate tax according to the profits made in the country. each country, regardless of their tax establishment. This second point concerns in particular the tech giants, who pay taxes often unrelated to the profits they generate locally, and who appear to be the big winners from the coronavirus pandemic. At the same time, the States are in search of resources to finance their gigantic stimulus plans and know that they cannot rely on low refinancing costs forever.