WASHINGTON, July 8 ― US Treasury Secretary Janet Yellen was able to help corral 130 countries to agree to a major revamp of international corporate taxation, but showing them she can bring a deeply divided US Congress on board may prove equally challenging.
These proposals contain key provisions to align US tax laws with the Organisation for Economic Cooperation and Development's international tax deal and are expected to be included in a budget reconciliation measure that Democrats aim to pass without Republican support. “If she's pushing the rest of the world to adopt a global minimum tax with a floor at 15 per cent, it is going to be completely rational for other countries to say, 'Is Congress going to accept what you're asking the rest of the world to do?,'“ said Manal Corwin, the head of KPMG's Washington National Tax practice.
The Biden administration has proposed a 21 per cent US GILTI tax rate, equal to the current domestic corporate tax rate. The official said the multinational taxing rights proposal has been carefully crafted to appeal to both Democrats and Republicans, as it eliminates discrimination against US companies and would ban digital services taxes targeting US technology firms. Preliminary estimates show that revenues would not be lost to other countries, the official said, addressing a common Republican complaint.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.