Yellen says India and China hindering 'Pillar 1' tax deal
U.S. Treasury Secretary Janet Yellen said on Friday she is trying to save a part of the global corporate tax deal focused on highly profitable multinational firms, but India is refusing to engage on issues important to U.S. interests.
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Yellen told Reuters in an interview on the sidelines of a G7 finance leaders meeting in Italy that China also has been «all but absent» in the negotiations to finalize "Pillar 1" of the OECD corporate tax deal reached in principle in 2021 that involves 140 countries.
«We are actively engaged in this negotiation,» to meet an end-June deadline for the deal, Yellen said. «We're committed to doing everything we possibly can to make it work.»
Earlier on Friday, Italian Finance Minister Giancarlo Giorgetti told reporters that the Pillar 1 negotiations were set to fail, citing objections from the U.S., India and China.
The Pillar 1 negotiations are mainly aimed at reallocating the taxing right on U.S.-based digital giants, allowing about $200 billion of corporate profits to be taxed in the countries where the companies do business.
A second pillar of the tax deal, the 15% global minimum tax on corporate profits is separately being implemented by many countries, but the U.S. Congress has not ratified it.
Yellen said there are two «red line» issues for the U.S. in the talks, related to transfer pricing and the «Amount B» system for simplifying the calculation of transfer pricing.
While most countries support the U.S.
