Reform must be implemented, Paris and Washington demand

U.S. Treasury Secretary Janet Yellen and French Finance Minister Bruno Le Meyer agreed Friday “On the Importance of Moving to Implementation” The global minimum tax for multinational companies has been announced by the respective ministries. The G20 countries approved in July the reform plan, which was announced in early June and discussed within the framework of the OECD.

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In total, 134 countries already support the reform, which proposes to impose a minimum 15% tax. On the other hand, Ireland, Hungary and Estonia did not give their approval, thanks to a tax rate of 12.5% ​​profit. Janet Yellen and Bruno Le Meyer “Agree on the need to quickly reach an agreement on the two main pillars of this reform”, The Ministry of Finance and Finance said in a statement after the telephone interview. In addition to the minimum tax, the reform also provides these companies with a more equal distribution of taxable rights.

“A global agreement on international taxes should be reached by the end of October 2021”The French Ministry added. For her part, the American minister underlined “Importance of a compromise on tax abolition of digital services” In the absence of a global agreement on the OECD, France adopted it in July 2019. The global tax should be substituted when implementing the global agreement. Bruno Le Meyer and Janet Yellen discussed the global economic situation and the potential for recovery in the United States, Europe and the world. The OECD and the US Central Bank this week downgraded the 2021 growth forecast for the world’s largest economy, which will affect global growth.

The International Monetary Fund (IMF) is due to release updated global figures on October 12. Janet Yellen and Bruno Le Meyer “France and the United States have agreed to continue close cooperation in the G20, especially to support poorer countries.” The French minister will visit Washington in October for the annual meetings of the World Bank and the IMF. A G20 will be held at the meetings starting on October 11th.