top of page

The US Sees G7 Support On A 15%+ Global Minimum Corporate Tax


The US is expected to continue seeing support amongst the G7 countries for its proposal on implementing a 15%+ global minimum corporate tax, significantly below Biden's current 21% minimum overseas income tax rate and 28% domestic corporate tax rate.


On Monday, the US Deputy Treasury Secretary Wally Adeyemo further stated that the Treasury's proposal was receiving support from France, Germany, Italy, and Japan, as the 15% rate was aimed to increase international appeal and incentivize other countries narrow the gap between US and overseas rates, helping to establish a common ground in determining a global minimum tax structure in the near future.


If a G7 agreement is settled, this would act as a strong catalyst for future formal negotiations at the OECD in Paris, where final rules surrounding international corporate taxation could be changed, especially for the world's largest companies. Based on this decision, companies will potentially be unable to relocate their profits in lower tax jurisdictions as easily, and it would ensure that many large companies based in the US would pay more tax in the countries where they generate their sales.


The G20 has goals of establishing a final global taxation deal by the end of the summer. This proposal will also be further discussed during the G7 virtual meeting this Friday.


bottom of page