The Organization for Economic Cooperation and Development has finalized a deal exempting U.S. multinational corporations from paying more corporate taxes overseas.
The way I’ve heard these minimum tax agreements described usually is where all the signatories agree to collect the same minimum corporate tax rate. The article says 15%. The US already has a 21% corp tax rate, setting aside tax incentives.
So what does it mean in this case to say that US corps are exempt? Does this mean that a US corp homed in the Caymans will pay a different rate than a French company in the Caymans? Or that the US is refusing to collect a minimum 15% after tax incentives?
I’m sure it’s spelled out in the text of the treaty, but maybe someone here has already done the digging.
It’s more about how US based companies like Google report their taxes in Ireland to avoid that local 21%. This was supposed to end the Caymans type loopholes. But now it’s worthless
The way I’ve heard these minimum tax agreements described usually is where all the signatories agree to collect the same minimum corporate tax rate. The article says 15%. The US already has a 21% corp tax rate, setting aside tax incentives.
So what does it mean in this case to say that US corps are exempt? Does this mean that a US corp homed in the Caymans will pay a different rate than a French company in the Caymans? Or that the US is refusing to collect a minimum 15% after tax incentives?
I’m sure it’s spelled out in the text of the treaty, but maybe someone here has already done the digging.
It’s more about how US based companies like Google report their taxes in Ireland to avoid that local 21%. This was supposed to end the Caymans type loopholes. But now it’s worthless
Ideally if enough countries agree, then there won’t be tax havens giant corps can use.
Yeah we need more info on such specs.