Undoubtedly, the minimum tax rate on the profits of multinational corporations implemented as part of the discussions on international tax reform will be less than 21%, Pascal St.-Aman, who is in charge of the issues, estimates on Wednesday. Tax on OECD.
“I doubt it will be 21%, but we hope it will be at a rate of 21%,” the director said during a hearing before the Senate Economic Affairs Committee on the Organization for Economic Co-operation and Development (OECD) on monetary policy and governance.
Announcing their desire to raise the minimum tax rate on American companies’ profits to 21%, the United States revived the debate on the standard of the minimum tax rate, regardless of the country in which they were manufactured. Framework for International Negotiations.
So far, the rate quoted in the OECD negotiations has been 12.5%, which is in line with the effect in effect in Ireland.
After the US announcements, Paris and Berlin said they were in favor of the US proposal, and so did Thierry Brett, the European Commissioner for Domestic Markets.
In addition to the world minimum rate, this reform, as discussed by the OECD, allows for the modification of corporate taxes according to the profits made by each country, regardless of the tax institution.
This second point is specifically aimed at digital giants who pay taxes that are unrelated to the income and profits they generate locally.
The OECD wants to reach a global agreement on the G20 finance in principle on July 9 and 10, followed by a final meeting in October.
At the minimum rate, “it is imperative that the United States pass their legislation, and we can see what the retention rate is and the rest of the world can determine a rate,” estimated Pascal St.-Aman.
“As far as architecture is concerned, I think we should have a contract from July (the rate) shortly after October”, he added, adding that the reform is expected to take effect, at least in part, until January 1, 2023.