Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

World Leaders Hit Rome to Toast a Tax Deal That’s Far From Done

EconomyOct 27, 2021 01:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters World Leaders Hit Rome to Toast a Tax Deal That’s Far From Done

(Bloomberg) -- Global heads of government including President Joe Biden will endorse a historic revamping of international corporate tax rules when they gather in Rome this weekend, though they have a long way to go to make the plan a reality.

Multi-country negotiations over important aspects of the plan remain unfinished. And the details that won’t emerge for many months may determine whether the U.S. Congress approves or rejects the deal, a decision that could make or break it internationally.

As they prepared to head for Rome, Treasury officials reiterated their optimism that the deal would ultimately attract bipartisan support among U.S. lawmakers. The agreement would end the flight of multinationals to low-tax havens, help provide needed tax revenue for governments and deliver a new level of certainty for companies operating across tax jurisdictions, the officials said in a briefing call with reporters Tuesday.

The pact, backed by 136 countries worldwide, would set a global minimum tax of 15% and reallocate some of the taxes imposed on the largest multinational firms based on where they generate revenue, instead of where they book profits.

But U.S. officials also acknowledged that work has only just begun on designing the formula for reallocating tax rights.

That formula will help determine the impact of the global tax deal on U.S. tax revenues. And should the reallocation have a net negative impact, it will be tougher for the Biden administration to secure congressional approval.

If Congress doesn’t get on board, that could, in turn, sink the broader international  deal. Several countries, including Ireland and other European Union members, have conditioned their support for the minimum tax on the U.S. following through on the tax reallocation. 

U.S. Treasury Secretary Janet Yellen will travel to Dublin immediately after attending the Rome summit, in part to express U.S. appreciation for its participation in the deal. Ireland’s assent was crucial since tax rule changes in the EU required by the new pact must be agreed to unanimously by EU member countries.

Yellen will meet with Ireland’s Finance Minister Paschal Donohoe on Nov. 1 and attend an event organized by the American Chamber of Commerce in Ireland. 

More than 900 U.S firms have a presence in Ireland, employing 180,000 directly, and another 140,000 indirectly, according to Treasury officials. Many of them were drawn to Ireland by its low corporate tax rates.

©2021 Bloomberg L.P.

World Leaders Hit Rome to Toast a Tax Deal That’s Far From Done

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Felipe Daniel
Felipe Daniel Oct 27, 2021 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rome is the headquarters of the New World Order. The goal of Pope Francis is to establish global communism where the elite class will rule unaffected and humanity will be reduced to serfs. The Vatican Holy See is the spiritual head of the Satanic NWO.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email