People familiar with the negotiations said that while the 15% rate was essentially a done deal, some of the world’s largest countries continued to fight for exemptions to lessen its impact on long-standing business models that have helped attract investment and create jobs.
“I am fully determined to pave the way for a consensus because we are one millimeter away from a global agreement on a new international tax system for the 21st century,” Bruno Le Maire, French finance minister, told CNBC on Wednesday. “Of course, some Member States are asking for a deadline, asking for an implementation period, a transition period; we are totally open to this kind of proposal.
Despite growing support for the agreement, concerns remain about how it will be implemented and whether it will be enacted uniformly around the world.
India, China, Estonia and Poland said the minimum tax could hurt their ability to attract investment with special lures such as research and development credits and special economic zones that offer relief. tax to investors. China, for example, has long used low-tax special economic zones to attract foreign investment, which has been a boon to its economic development.
The United States has been one of the deal’s most vocal supporters, but it also faces challenges in ensuring that the Biden administration’s commitments are enacted by Congress. Mr Biden’s economic agenda is in limbo, and Democrats are trying to figure out how to push through tax code changes that would ensure the United States complies with the international deal it is trying to negotiate.
The Treasury Department declined to comment on the details of the deal, noting that negotiations are still ongoing, but expressed optimism that a deal will be finalized when the leaders of the Group of 20 nations meet in Rome more late this month.
Treasury Secretary Janet L. Yellen “laser focus on progress to finalize what would be a landmark deal, and expects countries to unite around final parameters of new tax regime international, ”said Alexandra LaManna, spokesperson for the Treasury. She added that the deal would help create more jobs and investment in the United States and benefit workers.