U.S Treasury has held ground on proposals to introduce a global minimum tax rate of at least 15%, according to press release. The Treasury believes a global minimum tax will enable the global economy to thrive by creating a level playing ground for multinational entities.
The Treasury expects the global minimum tax to enhance innovation and growth while improving fairness in taxation for the middle and working class.
Treasury believes the current global minimum tax functionality at zero is a deterrent to the U.S and other economies’ ability to generate revenue.
The Treasury called countries to collaborate to establish the tax basis to ensure an equitable global taxation system that meets the needs of the 21st century.
The 15% global minimum tax rate is the base level and the U.S Treasury has stressed on the need for further deliberations that could see it pushed higher.
