G20 commit to work towards ‘ambitious’ international corporate tax deal backed by US Treasury Secretary Janet Yellen

Name: IMF projects stronger 2021 growth for US and China amid pandemic rebound
Uploaded: 2021-04-08T02:29:53.000Z
Duration: 2 min 5 s
Description: IMF projects stronger 2021 growth for US and China amid pandemic rebound

US Treasury Secretary Janet Yellen last week urged the adoption of a minimum global corporate income tax, citing a ‘30-year race to the bottom’ in which countries have slashed corporate tax rates to attract multinational businesses

On Wednesday, Italian Finance Minister Daniele Franco said after a meeting of finance ministers and central bank governors that the G20 was ‘committed to reaching an agreement, hopefully we expect it to take place in July’

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While international taxation reform has been in discussion for several years, Italian Finance Minister Daniele Franco said following the meeting of G20 finance ministers and central bank governors that there has been an “acceleration in the process” this year. Photo: EPA-EFE

Associated Press

Published: 10:29am, 8 Apr 2021Updated: 10:36am, 8 Apr 2021

Italy’s finance minister said on Wednesday that Group of 20 advanced economies hope by a ministerial meeting in July to have reached an agreement on international taxation, an issue being pressed by US Treasury Secretary Janet Yellen.

While international taxation reform has been in discussion for several years, Finance Minister Daniele Franco said there has been an “acceleration in the process” this year.

“It has been said that this is possibly the most ambitious work on taxation in a multilateral setting,’’ he said.

Yellen last week urged the adoption of a minimum global corporate income tax, citing a “30-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses. She said the Biden administration would work with the other advanced economies of the Group of 20 (G20) to set a minimum.

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IMF projects stronger 2021 growth for US and China amid pandemic rebound

Yellen stressed that competitiveness is about ensuring governments have stable tax systems and revenue to “invest in essential public goods.”

The discussions are focused on two pillars of global international taxation: The fair allocation of profits among different countries where multinationals operate, and the global minimum effective tax rate, Franco said.

“The G20 is committed to reaching an agreement, hopefully we expect it to take place in July,” when economy and finance ministers are scheduled meet in Venice, he said.