Yellen: Not all countries need to agree to global min tax

Wednesday, 16. June 2021 17:02

United States Secretary of the Treasury Janet Yellen spoke at the President's Fiscal Year 2022 Budget hearing on Wednesday saying that for the global corporate minimum tax initiative to be effective it is necessary to have a broad global agreement, but US Treasury doesn't need every country to go along with it due to proposed mechanisms that would prevent foreign corporations from shifting profits offshore.

Yellen also shared her belief that European Union countries will agree to the corporate minimum tax rate, including Hungary and Ireland that expressed disapproval of the proposal. The Treasury official also pointed out that the proposed 15% tax rate is the bare minimum, but she hopes that G7 members will adopt a higher rate.

"If we are able to make progress domestically on reforming our guilty tax which needs to be on the country by country basis [...] we have a very good chance for them to agree. We are really looking or an agreement on this by the time of the leaders G20 summit next October, I think we have a very good chance of a broad base agreement," Yellen said.

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