France Says Global Corporate Tax Agreement 'within Reach'

France on Tuesday joined a chorus of support for a US push to adopt a global minimum corporate tax, saying an agreement on international taxation "is now within reach"

Paris, (APP - UrduPoint / Pakistan Point News - 6th Apr, 2021 ) :France on Tuesday joined a chorus of support for a US push to adopt a global minimum corporate tax, saying an agreement on international taxation "is now within reach".

The US wants the G20 to agree on such a tax to stem the erosion of government revenues and end what Treasury Secretary Janet Yellen called a "race to the bottom" on taxation as companies go offshore to avoid higher rates.

"We are delighted by the US support for a minimal corporate tax," French Finance Minister Bruno Le Maire told AFP.

"An agreement on international taxation is now within reach," he said.

Finance ministers of the G20 club of large economies are expected to discuss the proposal during a virtual meeting on Wednesday, hosted by Italy.

A Treasury official told reporters the G20 goal is to have a proposal on the global minimum tax by July, and the Biden administration could if needed change its legislation to bring the US minimum tax into line with the international plan.

Le Maire said France also hoped to make progress with Yellen on a global digital tax to reach an agreement this summer.

The tax would target US internet giants such as Amazon, Facebook and Google, which have long been accused of exploiting loopholes to minimise their tax bills.

Negotiations on the issue have been held under the auspices of the Organisation for Economic Cooperation and Development (OECD).