Calls for a minimum global corporate income tax for multinational companies intensify

Ahead of semiannual meetings of the International Monetary Fund (IMF) and World Bank, the US Treasury Secretary Janet Yellen called for  the adoption of a minimum global corporate income tax for multinational companies. According to Associated Press, these remarks ‘essentially serve as an endorsement of negotiations that have been underway at the 37-nation Organization for Economic Cooperation and Development for roughly two years.’

French Finance Minister Bruno Le Maire has stated that France is ‘delighted by the US support for a minimal corporate tax’, and hopes to make progress with Yellen on a global digital tax agreement as well.

IMF’s chief economist, Gita Gopinath told Reuters that the IMF has long favored adoption of a global minimum tax on corporate profits, stating that tax avoidance is a troubling issue for the global economy.

The minimum global corporate tax for multinational companies would target the US internet companies, which were previously accused of exploiting differences in national taxation regimes to minimise their tax payments.

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