Multinational tax: Yellen confident in the rallying of reluctant EU countries - France 24

Brussels (AFP)

US Treasury Secretary Janet Yellen said she was confident on Tuesday that the three recalcitrant EU countries will eventually join the historic political deal on the taxation of multinationals reached at the G20 on Saturday.

"My feeling is that these countries want to find a way to achieve a + yes +," said Yellen, in an interview with journalists in Brussels who asked her about the reluctance of Ireland, Hungary and the Estonia, members of the European Union.

"We have several months of negotiations at the OECD to address the concerns that these countries may have," she explained.

"Estonia, for example, has very specific and unusual tax rules, and there are technical matters (to be discussed) on how to deal with them."

"Details remain to be worked out, but I am optimistic that (these countries) can join the agreement," added Janet Yellen.

"It is a historic agreement in the interest of all countries."

The G20 finance ministers on Saturday approved a tax reform project deemed "revolutionary".

It plans to introduce a world tax of at least 15% on the profits of the largest international firms and to distribute the rights to tax these companies more equitably.

The details of this reform must still be negotiated until October within the framework of the OECD for implementation from 2023.

The US Treasury Secretary, who attended a meeting of EU finance ministers in Brussels on Monday, also welcomed the suspension of the European digital tax project to finance the European recovery plan.

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"I am happy that the EU has decided to postpone the introduction of its tax. I think this gives us time to clarify the international agreement (on the tax of multinationals) which we all support and really want see it happen, ”she said.

Ms. Yellen stressed that the agreement being negotiated at the OECD "excludes taxes on digital services of the kind that the United States finds unfair and discriminatory against American companies".

"But what will ultimately be allowed or not (in terms of digital tax), remains uncertain at this stage. There will be a lot of negotiations to clarify this. I think the postponement will give us the opportunity to study these subjects with more. attention, ”she said.

Although it has not yet been made public, the European Commission has repeatedly asserted that its proposed tax would comply with the OECD agreements and that it did not target the American giants but would affect thousands of people. companies, including European ones.

© 2021 AFP