US Treasury Secretary presses Poland on global minimum tax

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US Treasury Secretary Janet Yellen thanked Polish leaders on Monday for taking in millions of Ukrainian war refugees, but pressed them to support European Union plans to implement a global corporate minimum tax of 15 %.

Poland is the only hurdle in the EU’s implementation plan, having vetoed a compromise in April to launch the 137-nation agreement reached last October aimed at ending a competitive downward spiral in corporate tax rates.

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Poland’s new finance minister, Magdalena Rzeczkowska, advocated a “legally binding” link between the global minimum tax and the other pillar of tax negotiations – a redistribution of some tax rights from large, highly profitable multinationals to “market countries” where your services and products are sold.

For some countries participating in the Organization for Economic Co-operation and Development talks, the so-called Pillar 1 plan is the most desired global tax change, allowing them to collect revenue from US tech giants such as Alphabet, which owns Google; Meta, owner of Facebook; Amazon.com and Apple.

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But the relocation pillar was not part of the October deal and is not fully developed.

This more complex plan calls for changes to international tax treaties, and Rzeczkowska expressed concern that if it fails, the global minimum tax will overwhelm European companies.

French Finance Minister Bruno Le Maire, the current chairman of EU finance ministers, expressed skepticism about these arguments amid legal disputes between Poland and the EU.

Source: CNN Brasil

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