UK’s Labour Pushes for Vote on U.S. Minimum Corporation Tax Plan

Britain’s main opposition Labour Party said it will push for a vote in parliament on Monday over support for U.S. plans to introduce a global minimum corporation tax rate, Reuters reported. The U.S. Treasury Department earlier this week said that it would accept a floor of at least 15% during international negotiations, a rate significantly below its proposed 21% minimum for U.S. multinational firms. The Biden administration's proposed Global Intangible Low-Taxed Income tax (GILTI) rate of 21%, aimed at capturing revenue shifted by companies to tax-haven countries, was widely viewed as a starting point for renewed OECD talks on a global minimum tax. While France and Germany backed 21%, other countries have pushed for a lower rate, as previous OECD discussions on the subject had centred around 12.5%, the same rate charged by Ireland. Britain will raise its main corporation tax rate to 25% from 19% in 2023, finance minister Rishi Sunak announced earlier this year. Read more.