US Treasury Secretary Janet Yellen will bring the corporate tax discussion into the line this week.
The policymaker looks to press G20 member states to agree on raising corporate tax rates to a minimum of 15%.
The motion has been agreed on by 130 countries around the globe. It looks to undergo a series of negotiations over the past weeks, discussing the final threshold for the rate hike.
Last week, the Organization for Economic Cooperation and Development or OECD expressed its support for the move.
The upgrade in global minimum tax will affect the world’s biggest and most profitable companies.
These include leading technology firms in the market today, such as Apple Inc, Amazon.com, Facebook, and Alphabet Inc, among others.
This coming Friday and Saturday, G20 leaders will meet in Venice, Italy. Some experts said that the motion would surely become one of the key points of the convention.
The final decision is likely to come by October, during the organization’s scheduled summit.
For the record, the deal is originally agreed on by G7 member states over their meet last month held in Cornwall, United Kingdom.
The idea originally came from US President Joe Biden, who proposed to double the country’s minimum tax rate to 21%.
This will include the enforcement tax mechanism, which would deny tax deductions to some companies. These will include businesses operating in countries that do not adhere to the new global minimum rate.
Currently, Yellen is said to be working with the tax-writing committee in aligning US tax laws with the new international standard.
On the other hand, experts warned that the course would take some swerves as the Republican Party already expressed opposition to the motion.
France Incites Optimism from Group of Twenty Decision
Amid the ongoing uncertainty, French Finance Minister said that the Group of Twenty would back the legislation.
In a statement, Bruno Le Maire said that member states are readying their endorsement on the proposal during their meet over the weekends.
Last month, Mexico already voiced out its agreement on the move, saying that it will be necessary to bridge the gap between rich and poor countries.
Meanwhile, the policymaker highlighted that the technical aspects of the agreement will be up for some reckoning.
The final decision is likely to come into force later in the week. This will include the areas of exemption and possible political loopholes.