Treasury Secretary Yellen testified before House and Senate tax writers on June 17 that the proposed global minimum tax on multinationals would be “at least 15%,” and that she was “pursuing absolutely every avenue” to kill other countries’ digital service taxes.
Yellen expressed confidence that “the entire EU will, in the end, go along with higher minimum taxes,” and that agreement under Pillar Two of the Organisation for Economic Co-operation and Development’s base erosion and profit-shifting (BEPS) 2.0 project will be used to prevent companies from avoiding taxes. Several countries had pursued their own digital services taxes in recent years after negotiations for agreements under Pillar One and Pillar Two of BEPS 2.0 floundered.
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