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G7 Reaches Global Tax Agreement

Republican lobbyists and lawmakers warned that doing so would make American companies less competitive than their international counterparts and lead to more offshore.

Janet L. Yellen, Minister of Finance and other executive officials has said that other countries Complying with basic tax rates on foreign profits will reduce any disadvantage. to American companies And it makes them less likely to move their operations to lower-tax countries.

Yellen described the deal as “important” and “unprecedented”.

“The global minimum tax will end the corporate tax competition. and ensure fairness for the middle class and working people in the United States and around the world,” Yellen said in a statement. “Global minimum taxes will also help the global economy thrive by enhancing the playing field for businesses and encouraging countries to thrive. Compete on positive bases such as educating and training our workforce. and investment in research and development and infrastructure.”

A group of seven delegations representing the United Kingdom, Canada, France, Germany, Italy, Japan and the United States. negotiated late into the night until Friday To clarify in detail how the new tax system will work and the language of the statement

France, which has pushed for a tax rate above 15 percent, wants to ensure higher tax flexibility remains. The United States has pushed European countries to abolish taxes on digital services. which the management stated Unfairly targeting American tech companies, France, Italy and Britain resisted abandoning those taxes until the deal was finalized and in effect. This is a process that can take up to four years.

A joint statement or communiqué released on Saturday. Pointing out that the digital tax will still be in effect for now.

“We will provide appropriate coordination between the implementation of the new international tax rules and the abolition of all digital services tax. and other measures similar across all companies,” the statement said.

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