The new Biden administration has seemingly unlocked the impasse that has plagued the OECD Inclusive Framework project on addressing the tax challenges of digitalization. Positive words promising engagement in the multilateral process by secretary of the Treasury, Janet Yellen, were followed by
‘The Made in America Tax Plan’ (making changes to the US international tax regime) and, the following day, a presentation to the steering group of the Inclusive Framework (proposing a simplified pillar one and a pillar two global minimum tax set at a rate of 21%). The interventions have been widely welcomed but will the plans take off?
*This article was first published in Tax Journal on May 7, 2021.