WASHINGTON (Reuters) – The U.S. Treasury on Monday proposed a new mechanism to comply with and enforce a 15% global corporate minimum tax agreed last year by 136 countries, partly by denying deductions for taxes paid in jurisdictions with lower rates.
The new Undertaxed Profits Rule proposed as part of President Joe Biden’s fiscal 2023 budget plan would replace the current U.S. Base Erosion Anti-Abuse Tax (BEAT) with a new system that would act as a “top-up tax” to ensure that multinational corporations pay an effective tax rate of at least 15%, the Treasury said in budget documents released on Monday.
(Reporting by David Lawder; editing by Jonathan Oatis)
