130 nations agree to support U.S. proposal for global minimum tax on corporations
Published Thu, Jul 1 202111:46 AM EDTUpdated Thu, Jul 1 20217:12 PM EDT
Christina Wilkie@christinawilkie


A group of 130 nations has agreed to a global minimum tax on corporations, Treasury Secretary Janet Yellen announced Thursday, part of a broader agreement to overhaul international tax rules.

Yellen did not announce the actual rate at which the GMT would be set, but the Biden administration has pushed for at least 15%.
The GMT would effectively end the practice of global corporations seeking out low-tax jurisdictions to move their headquarters.

WASHINGTON - Treasury Secretary Janet Yellen announced Thursday that a group of 130 nations has agreed to a global minimum tax on corporations, part of a broader agreement to overhaul international tax rules.

If widely enacted, the GMT would effectively end the practice of global corporations seeking out low-tax jurisdictions like Ireland and the British Virgin Islands to move their headquarters to, even though their customers, operations and executives are located elsewhere.

“For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response. The result was a global race to the bottom: Who could lower their corporate rate further and faster? No nation has won this race,” said Yellen in a statement on the accord.

“Today’s agreement by 130 countries representing more than 90 percent of global GDP is a clear sign-- excerpt, rest at link above --