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Germany's Scholz to discuss global corporate minimum tax in Washington

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By Reuters
Germany's Scholz to discuss global corporate minimum tax in Washington
Germany's Scholz to discuss global corporate minimum tax in Washington   -   Copyright  Thomson Reuters 2021
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BERLIN – German Finance Minister Olaf Scholz will travel to Washington later this week to meet senior members of the U.S. administration and discuss international efforts to introduce a global corporate minimum tax, a spokesman said on Monday.

Germany and the United States are trying to forge a broad coalition among the Group of 20 major economies (G20) to revamp international tax rules, including a global minimum corporate tax of at least 15% with as few exemptions as possible.

The Group of Seven (G7) wealthy, industrialised states agreed on June 5 to support a minimum corporate tax rate of at least 15% and how to share rights to tax the biggest companies operating across borders in their countries.

To make the plan work worldwide, the backing of G20 finance ministers during a meeting in Venice on July 9-10 is seen as crucial, and officials are now limbering up for a clash over exemptions and other carve-outs for specific industries and special economic zones, with China at the centre.

During his four-day visit in Washington from Wednesday until Saturday, Scholz is expected to meet U.S. Treasury Secretary Janet Yellen and other senior members U.S. President Joe Biden’s administration.

Yellen has said she won’t agree to any type of special treatment for China or other countries that would weaken a global minimum tax regime. Her talks with Scholz are likely to focus on where both countries see red lines and where they are willing to compromise to facilitate a G20 breakthrough.

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