United States Treasury Secretary Janet Yellen announced at a G20 finance ministers meeting on Friday that the President Joe Biden administration is ready to enter the discussion of global digital taxation reform, proposed by the Organisation for Economic Co-operation and Development (OECD) without the "safe harbor" stipulation that was earlier introduced by former President Donald Trump.
Yellen assured G20 ministers that the US "is no longer advocating for safe harbour implementation" and "will engage robustly to address both pillars of the OECD project, the tax challenges of digitisation and a robust global minimum tax", the Financial Times reported citing a Treasury official. Trump's original suggestion would have allowed tech companies to abide by any agreement on voluntary basis.
"As we know, the changing global economy presents new challenges for corporate taxation. The United States is committed to the multilateral discussions on both pillars within the OECD/G20 Inclusive Framework, overcoming existing disagreements, and finding workable solutions in a fair and judicious manner," Yellen's official letter to G20 colleagues said.
