Once countries start adopting the 15% global minimum tax rate on multinational companies, others must follow or they will lose revenue, according to US Treasury Secretary Janet Yellen.
At an event held this Monday (20) in Toronto, Canada, Yellen highlighted that the proposal agreed last year includes a mechanism that reinforces its application. According to her, countries that adopt the minimum tax may also tax multinationals based in other nations.
With that, governments that, at first, reject the proposal, would end up accepting it when they see that they are losing revenue and “their companies” are already being taxed, explained the secretary.
According to her, the minimum tax was necessary because the “race” for competitiveness in recent decades has caused the global tax level for multinationals to drop a lot. As a result, only companies benefited and countries no longer receive “significant” revenue from this source, she said.
Yellen also said that he hopes for the passage of legislation to institute the minimum tax of 15% in the US soon, via a reconciliation mechanism – which allows the approval of agendas with a simple majority in the US Congress.
She also highlighted that the European Union (EU) is “very close” to reaching consensus, with 26 of the 27 member states in favor of the tax.
Source: CNN Brasil
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