U.S. Treasury Secretary Janet Yellen and French Economy Minister Bruno Le Maire agreed on Friday on the "importance of moving forward towards the implementation" of a global minimum tax for multinational corporations, as announced by both ministries. This reform project, announced in early June and negotiated under the framework of the Organisation for Economic Co-operation and Development (OECD), was endorsed by G20 countries in July. In total, 134 countries support this reform which proposes a tax rate of no less than 15%. However, Ireland, which has thrived due to its relatively low tax rate of 12.5%, along with Hungary and Estonia, has not given its approval.
In a statement following the officials' telephone meeting, the French Ministry of Economy and Finance noted that Janet Yellen and Bruno Le Maire "agreed on the necessity to reach an agreement quickly on the key standards for the foundations of this reform." In addition to imposing a minimum tax, the reform calls for a fairer distribution method for tax rights on these companies. The French ministry added, "A comprehensive agreement on international taxation should be reached by the end of October 2021."
For her part, the U.S. Secretary emphasized "the importance of reaching a compromise on the elimination of digital services taxes," which France adopted in July 2019 due to the lack of a global agreement at the OECD. Le Maire and Yellen also discussed the global economic situation and the prospects for recovery in the United States, Europe, and the world, and "agreed to continue close cooperation between France and the United States in the G20, particularly to support poorer countries." The French minister is scheduled to visit Washington in October to attend the annual meetings of the World Bank and the International Monetary Fund. The G20 meetings are set to begin on October 11.
