Global tax reform: US Treasury Secretary Janet Yellen dampens expectations

US Treasury Secretary Janet Yellen is in the planned global tax reform more pessimistic than federal finance minister Olaf Scholz. Yellen said on Sunday at the end of the G20 meeting in Venice, the first pillar of the reform may not be ready before spring 2022. Scholz had said at the weekend that he firmly expected a final agreement in October.

The SPD candidate for chancellor is one of the strongest supporters of the tax reform. It comprises two pillars: a global minimum tax of 15 percent for global companies and a new distribution of the rights to tax international companies. The 100 largest and most profitable corporations in the world should therefore pay more taxes in countries with large markets, which would benefit emerging countries in particular.

According to experts, the technical implementation here is more difficult than with the planned minimum tax for large companies. Yellen said this approach is "on a faster lane".

Almost all of the 139 OECDStates have already approved the reform at working level, including well-known tax havens. On the other hand, the three EU states are among the refusals Ireland, Estonia and Hungary. An international agreement is to be concluded for the new distribution rules. The minimum tax must be implemented individually in the states.

The OECD should clarify the final details by October and present a plan for implementation. The new rules, from which Scholz hopes to generate billions in additional income for the state coffers that are empty due to the corona pandemic, are to be put into law in 2022 and then take effect from 2023.