The US is proposing a general corporate tax rate of at least 15% in international talks

The Biden administration has stated that it will introduce a global minimum tax of 15% on large multinational companies in international talks to increase the income of cross-border corporations.

The US plans to review the tax system, started in April, proposed that a new sales tax be applied to each country by the largest companies, including large U.S. technology groups, on global profits, regardless of their physical presence in a particular country.

U.S. officials have met with negotiators from countries participating in OECD talks this week to discuss what this minimum tax rate should be. The Biden administration had previously proposed 21 percent, the U.S. Treasury reported.

Treasury officials said they will continue to advocate for a minimum tax around the world at the highest possible rate, but that 15 percent should be on the floor.

The Biden administration’s proposal has been rejected by members of Congress and some members of the OECD. Ireland, which charges one of the lowest corporate tax rates at 12.5 per cent, said it would push for a global agreement on corporate taxes that would adjust to the current low rate and allow for “healthy and fair tax competition”.

The White House has also proposed raising the corporate tax rate from 21% today 28 percent.

Biden hopes that the promise of a more stable international tax system will stop the proliferation of national digital taxes and break the mold of tax avoidance and profit shifting.

Washington has threatened to impose tariffs on countries such as France, the United Kingdom, Italy and Spain because of the digital taxes that U.S. technology companies are demanding to pay.

If the U.S. plan were approved, it could increase the revenues of other U.S. technology groups and other multinationals that operate in their jurisdictions but pay little corporate tax.