The United States Congress can approve in the spring of 2022 one of the pillars of the global tax agreement agreed within the framework of the OECD and endorsed by the G20 in Venice. This was stated by the US Secretary of the Treasury, Janet Yellen,  at a press conference held on Sunday, July 11th, during her visit to that nation.

The finance ministers and governors of the G20  central banks have underpinned this system that is based on two pillars: allocating a percentage of the profits of companies to certain jurisdictions so that they pay taxes where they operate, even if they do not have a physical presence. The second refers to the application of a minimum corporate tax, at least 15 %, to companies with a turnover in the order of 750 million euros, about 890 million dollars.

The US Congress must pass the agreement before the nation can join the pact. But according to the Treasury Secretary’s statements, the chamber could approve the first pillar in the spring of 2022, while the second could be endorsed this year.

Yellen stressed that several countries will adopt the agreement on international taxation and informed that he will meet, on Monday, with Ireland, Estonia and Hungary, in order to explain the importance of their accession.

The Secretary of the Treasury indicated “now we are all the countries competing on the basis of economic fundamentals, with our economic strengths, our capacities for innovation and the robustness of our economic institutions.” She added that the pact will provide the resources to invest in infrastructure, education, and research and development.

M. Rodríguez

Source: eldinero.com.do

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