Saturday, December 17, 2022

US treasury head hails EU adoption of global minimum tax

Janet Yellen says deal helps level playing field for US business, protecting American workers

AA SATURDAY 00:28, 17 DECEMBER 2022

US Treasury Secretary Janet Yellen

US Treasury Secretary Janet Yellen on Friday welcomed a decision by the EU to adopt a global minimum tax of 15% on large companies.

"The United States led the world in being the first to adopt a minimum tax on the foreign earnings of domestically parented multinational enterprises, and both I and the President remain deeply committed to take the additional steps needed to implement this agreement, too," Yellen said in a statement.

She said the agreement "helps level the playing field for US business while protecting American workers."

The global system of imposing a minimum 15% tax rate on multinational corporations from 2023 was finalized in October, agreed by 136 countries that represent more than 90% of global gross domestic product, the Organisation for Economic Co-operation and Development (OECD) had announced.

The deal will re-allocate more than $125 billion of profits from around 100 of the world's largest multinational corporations, ensuring that these firms pay a fair share of tax wherever they operate and generate profits, according to the OECD.

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