Business & Economy

Yellen confident US will approve new global tax scheme fully by spring 2022

Venice, Italy, Jul 11 (EFE).- The United States Secretary of the Treasury Janet Yellen on Sunday said she was confident that the US would fully approve the global multinational tax scheme by spring of 2020.

On Saturday, G20 finance ministers gathered for a summit in Venice, Italy, gave their backing to the two-pillar tax scheme, which firstly seeks to re-allocate taxation rights over multinational companies based on where they operate regardless of legal domicile and secondly envisages a global 15% minimum tax rate to put on floor under competition.

The “two pillars” approach is outlined in a report from the Organization for Economic Cooperation and Development (OECD) that already has backing from the vast majority of the 139 jurisdictions making up the OECD/G20 Inclusive Framework.

Governments aim to have it in place by 2023.

Yellen told a conference Sunday that the first pillar could get US Congressional approval by early 2022 having said on Saturday that she hoped Washington would approve the 15% minimum rate this year.

“Instead of asking the question who can offer the lowest tax rate, it will allow all our countries to compete on the basis of economic fundamentals, on the skill of our workforces, our capacity to innovate and the strength of our legal and economic institutions.

“This deal will give our nations the ability to raise the necessary funding for important public goods like infrastructure, research and development, and education,” she told the G20 meeting.

According to the OECD, a 15% minimum rate on multinationals could translate into $150 billion a year in additional revenue for governments.EFE


Related Articles

Back to top button