IMF urges countries to tax multinationals

This part of the agreement, known as the first pillar, has yet to be ratified by all countries. The second pillar of the agreement is a minimum tax rate, which nations have agreed to be at least 15%.

About a third of the IMF’s 190 member countries have yet to sign the deal, and many of them are not part of talks led by the Organization for Economic Co-operation and Development (OECD).

A major concern for some countries is that the rules are relatively straightforward, said Geoffrey Okamoto, the IMF’s first deputy managing director, after the Group of 20 finance ministers’ meeting in Venice.

“The IMF wants a system that works for all members, although it is still possible to simplify both the first and the second pillar,” Okamoto said.

“You always have to be careful to keep this as simple as possible to get the job done, so it’s easy and efficient to administer,” Okamoto added.

For her part, United States Treasury Secretary Janet Yellen said today that in her country “the initiative may not be ready until spring 2022”.

Yellen argued that “the inclusion of provisions to implement the Pillar 2 minimum tax in a budget bill this year in Congress could have the approval of the Democratic majority but without the support of the Republicans.”

The Pillar 1 part would end unilateral taxes on digital services, in exchange for a new mechanism that would allow them to be partially taxed, by the countries where they sell products and services, instead of just those that host their headquarters. social or intellectual property.

“This will require a multilateral tax deal which will take time to negotiate,” Yellen said.