The US does not plan to sign the OECD agreement on digital taxation until 2024

USA does not expect to sign the agreement sealed by 138 countries within the framework of the OECD to create a new international tax system for large companies digital companies because first you want to solve “open questions” and subject it to a consultation process.

This was explained by the US Treasury Secretary, Janet Yellen, in a press conference after participating in the meeting of economic and finance ministers of the eurozone (Eurogroup) in Luxembourg, asked if Washington is ready to sign the agreement published last week. by the Organization for Economic Cooperation and Development (OECD).

“We believe it is critically important for a treaty of this level of importance and complexity to show it to the American people, to Congress, to the business community, to those who will be affected by it, and to hear what their reactions are and to ensure that we have a solid support in the United States”, Yellen said.

The text has been circulated around Washington for comments for the next sixty days, so before proceeding to the signing this consultation must be completed and “In addition, there are some questions that remain open,” he added.

“Much of the treaty has been agreed, there is substantial progress in the negotiation of this treaty, but there are some important issues for the United States and other countries that remain unresolved, which still need to be resolved before the treaty can be signed, so These processes will take us to next year,” explained the Treasury Secretary.

In 2021, an agreement was reached between 138 countries for a new international tax system with two pillars: Pillar 1 relating to the distribution of taxes on the profits of large companies, particularly digital ones, to ensure that they are taxed where generate them, and Pillar 2 to set a minimum corporate tax rate of 15% for large multinationals.

However, negotiations to launch it are taking longer than expected, especially with regard to Pillar 1.

This provides that companies with a turnover of more than 20,000 million euros annually and profits above 10% have to pay taxes on 25% of the profits that exceed that threshold in those jurisdictions where they make their sales, regardless of where. have their headquarters declared.

This seeks to put an end to the current situation, in which digital companies are taxed where they have their headquarters despite the fact that they generate profits in other jurisdictions. Hence, the support of the United States, headquarters of the world’s largest technology companies, is crucial.