In a letter to the finance ministers of the UK, France, Spain and Italy, US Treasury secretary Steven Mnuchin warned that ongoing discussions at the OECD on global taxation rules for multinational companies had reached an impasse.
French Finance Minister Bruno Le Maire has said that France, the UK, Italy and Spain had jointly responded on Thursday to the letter from Secretary Mnuchin announcing that they wanted to achieve a deal at the OECD as soon as possible.
techUK believes reaching an agreement at the international level remains vital to create a sustainable solution for the taxation of multinational companies in the 21st century. This pause in the talks is disappointing as discussions need to continue at pace to reach an agreement before the OECD’s deadline of December this year.
As the global economy becomes more digital coordinated action at the multilateral level is essential, otherwise there is a risk of fragmentation, protectionism and reduced growth.
techUK would encourage all sides to agree a resumption of discussions as soon as possible in order to make progress and reach an agreement ahead of the December deadline.