US Treasury Department: "Global Corporate Tax Rate Must Be at Least 15%"

Disagreement Over Global Corporate Tax Rate Floor
Presented by OECD Tax Adjustment Group
US Initially 21% → Lowered to 15%

▲Janet Yellen, U.S. Secretary of the Treasury [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The U.S. Treasury Department has argued that the minimum corporate tax rate for global companies should be at least 15%. This is a call for a floor on corporate tax rates set by individual countries.

According to Bloomberg and other sources on the 20th (local time), the Treasury Department presented this position at the OECD tax adjustment group meeting addressing this issue.

The Treasury stated, "15% is the 'minimum'," adding, "Discussions should continue to gradually raise the rate."

Currently, the OECD is discussing a minimum corporate tax rate of 12.5%. France and Germany have expressed support for the 21% rate proposed by the Biden administration, but the UK believes that 21% is too high in the long term. Ireland, which currently maintains a 12.5% corporate tax rate, is also skeptical of the Biden administration's proposal.

U.S. companies are maintaining the 21% rate lowered during the Donald Trump administration. Treasury Secretary Janet Yellen initially proposed this 21% as the global minimum corporate tax rate, but due to disagreements among countries, it is seen as an adjustment aimed at reaching a consensus.

Bloomberg analyzed that "this U.S. proposal moves closer to the 12.5% rate suggested by the OECD."

Earlier, the Biden administration announced plans to raise the U.S. corporate tax rate, currently at 21%, to 28% in the future. Since this could reduce the global competitiveness of the U.S., the argument for setting an international minimum corporate tax rate reflecting these concerns is gaining traction.

Treasury Secretary Janet Yellen said, "The international tax structure must be stable, and the global playing field must be fair," adding, "Countries need to foster an environment of cooperation to ensure the global tax system is fairly structured to meet the demands of the 21st-century world economy."

Meanwhile, according to the OECD, the number of countries with corporate tax rates exceeding 30% has decreased from 55 in 2000 to fewer than 20 currently.

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