France also in favor of introducing a global minimum corporate tax rate
France also in favor of introducing a global minimum corporate tax rate
  Economy  |  Taxation  |  International

France also in favor of introducing a global minimum corporate tax rate

France is open to the idea of setting a minimum corporate tax rate for multinational companies, above 12.5%, French Economy Minister Bruno Le Maire said today in the wake of statements by US counterpart Janet Yellen.
RE+D magazine
07.04.2021

 

In the ongoing negotiations with the OECD to establish an Global corporate tax system, France has so far favored a global minimum tax rate of 12.5% ​​on profits, equivalent to that in force in Ireland.

US Treasury Secretary Janet Yellen said Monday that the United States was working "with the G20 to agree on a minimum corporate tax rate," but did not specify the level at which the tax would be set.

 Yellen reaffirmed the US willingness to see such a harmonized tax achieved globally, at a time when the Biden administration wants to raise taxes on US businesses to fund the giant infrastructure project.

This plan mainly envisages an increase from 10.5% to 21% of the minimum tax rate on the profits of American companies, regardless of the country in which these profits are made.

Yesterday, he assessed that the American opening makes it possible to reach a global agreement on the reform of the taxation of multinational companies, something that has been negotiated for many years under the auspices of the OECD.

In addition to a global minimum tax rate, this reform also provides for the correction of corporate tax according to the profits made in each country, regardless of their tax headquarters.

This second point is mainly aimed at Internet giants, who often pay taxes that are not related to the income and profits they have in each country. The OECD wants to reach an agreement at the G20 economic leaders' conference, programmed to take place on 9 and 10 July.