Proposed GILTI Rate Rise Could Affect Global Tax Reform Talks

By: Stephanie Soong Johnston 

A U.S. proposal to increase the rate of the global intangible low-taxed income provision of the Tax Cuts and Jobs Act may influence OECD global tax reform discussions, a top German official said. “We are of course aware there’s a plan to raise the GILTI rate; of course, this plays a role in our discussions, given that the U.S. is the world’s largest economy,” Martin Kreienbaum, director general of international taxation at the German Federal Ministry of Finance and chair of the OECD Committee on Fiscal Affairs, said. He was speaking during a March 25 panel at the American Bar Association U.S. and Europe Tax Practice Trends virtual conference. “If the world’s largest economy thinks that the rate currently laid down in the GILTI should be higher in [the] future, then I think that would also have an impact on our discussions,” Kreienbaum added.

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By Stephanie Soong Johnston, posted on Friday March 26, 2021

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