Paris and Washington support a tax reform project for international companies

US Treasury Secretary Janet Yellen and French Economy Minister Bruno Le Maire agreed on Friday “the importance of moving forward towards implementation” of the minimum … Global taxes on multinationals, as announced by the two ministries.

This reform project, announced in early June and negotiated within the Organization for Economic Co-operation and Development, was approved by the G-20 countries in July.

In total, 134 countries support this reform, which proposes a tax of at least 15%. On the other hand, Ireland, which thrived thanks to a relatively low tax rate of 12.5%, as well as Hungary and Estonia, did not give their consent.

The French Ministry of Economy and Finance said in a note after the telephone meeting of the officials that Janet Yellen and Bruno Le Maire “agreed on the need to quickly reach an agreement on the main parameters underlying this reform”.

In addition to imposing a minimum tax, the reform provides for a more equitable distribution of taxation rights to these companies.

“A global agreement on international taxes must be reached by the end of October 2021,” the French ministry added.

For his part, the US secretary stressed “the importance of reaching a compromise on the abolition of taxes on digital services” which France adopted in July 2019 due to the lack of a global agreement in the Organization for Cooperation and economical progress.

Le Maire Willen also discussed the global economic situation and the prospects for recovery in the United States, in Europe and the world, and “has agreed to continue close cooperation between France and the United States in the G20, especially to support poor countries”.

The French minister will go to Washington in October to participate in the annual meetings of the World Bank and the International Monetary Fund. The Group of Twenty will meet during the meetings starting on 11 October.

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