U.S. Treasury’s Yellen seeking October agreement on global minimum corporate tax

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Treasury Secretary Janet Yellen testifies during a Senate Banking, Housing and Urban Affairs Committee hearing on the CARES Act at the Hart Senate Office Building in Washington, DC, US, September 28, 2021. Kevin Dietsch/Pool via REUTERS
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WASHINGTON (Businesshala) – US Treasury Secretary Janet Yellen said on Tuesday that she is looking for G20 countries to reach a political agreement on a global minimum corporate tax deal at their summit in October and at a rate of more than 15%. Has not denied.

Yellen, speaking to the National Association for Business Economics, said the Senate Finance Committee is looking at a “slightly higher” foreign minimum corporate tax rate than the 16.5% passed by the House of Representatives Ways and Means Committee.

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“We will see where this all shakes out, but my hope is that when the reconciliation (law) is passed, we will come into compliance with this regime, and we are finally looking for a political settlement at the G20 summit.” October, and then countries will implement it quickly,” Yellen said.

Some 134 countries agreed to support a global minimum tax of at least 15% over the summer, but lower-tax Ireland has held back from supporting the deal as it waits to see if the US Congress accepts the Biden administration’s proposed tax increase on corporations and wealthy Americans.

Yellen said she was optimistic that Ireland and other European holdout countries would eventually join the Organization for Economic Co-operation and Development (OECD) tax deal.

Ireland has had a 12.5% ​​corporate tax rate for years, which has attracted investment from large US multinationals such as Alphabet Inc.’s Google and Apple Inc.

“I think they think it’s an existential question, but I believe they will eventually come to terms with it,” Yellen said.

“There are some other holdouts, Estonia and Hungary, and we’re working really hard to find ways to get them on board, so I’m very optimistic that it will happen.”

Reporting by David Lauder; Editing by Peter Cooney

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