U.S. Deputy Treasury Secretary Wally Adeyemo said he anticipates strong support from the G7 industrial democracies for the Biden Administration’s proposed 15%-plus global minimum corporate tax, which in turn should help solidify support in the U.S. Congress for domestic corporate tax legislation. The Treasury last week floated a global minimum rate of 15% or higher, well below the Biden administration’s 21% minimum rate for U.S. companies’ overseas income and its 28% proposed domestic corporate tax rate. In 2017, the Trump administration and Republicans in Congress cut the rate to 21% in 2017 and instituted a minimum tax rate on overseas income from intangible sources of 10.5%. The U.S. global minimum tax proposal is expected to be a key topic of discussion at a preliminary virtual G7 finance leaders meeting on Friday. By the time of a G20 finance leaders meeting in Venice, Italy in July, there should be a good sense of unity around a global minimum tax structure, Adeyemo said.

Source: The Hindu May 24, 2021 20:48 UTC