Especially keen on an enlarged treasury is the Joe Biden administration of the US, which has proposed a rejig of global taxation norms for multinational corporations (MNCs). Since US interests loom large and tax havens stand to lose, its chief proposal of a minimum corporate tax rate of 21% is likely to face resistance. On corporate tax, a floor rate of about 18-20% would suit us well if other regimes are also committed to charge no lower. Taxes on MNCs typically accrue to places where they record profits and/or are based. The appeal of a global slice-up of taxes on internet-spun profits may lie in Washington’s power to push the world’s tech majors towards the transparency needed to work out their real liabilities, market by market.

Source: Mint May 17, 2021 17:03 UTC