US Treasury Secretary Janet Yellen is convinced that the system for taxing multinational companies will probably not be ready until 2022. She said this at a conference of G20 representatives in Venice.
Janet Yellen said the debate on the distribution of OECD tax rights was not as rapid as the agreement to introduce a global corporate tax of at least 15 percent. The G20 finance ministers and central bank governors agreed on a minimum corporate tax agreement. However, several questions remain about US President Joe Biden’s ability to push through the agreement in a deeply divided Congress. He has yet to ratify the resulting agreement.
The Global Minimum Corporate Tax is intended to replace individual taxes imposed on digital services in exchange for a mechanism that allows multinational companies to be taxed according to where they sell their products and services and not according to where they are based.
But the development and implementation of a specific mechanism will take some time, according to the US Secretary of the Treasury. “It could be ready no earlier than the spring of 2022, by which time we will try to say what needs to be done to implement this system,” Yellen said after the weekend meeting.