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By Andrea Shalal
WASHINGTON, July 2 (Reuters) – White House Economic Advisor Brian Deese said Friday the United States is still working to get more countries to join an agreement signed by 130 countries this week that is a global corporation -Minimum tax supported by at least 15%.
The deal will help boost President Joe Biden’s efforts to raise corporate tax rates domestically, while also helping to increase the revenue needed for a wide variety of investments, Deese told reporters at the White House.
Officials from 130 of the 139 countries who attended the talks held by the Organization for Economic Co-operation and Development on Thursday approved a major overhaul of the rules governing the taxation of international companies.
Those who refused to do so included Ireland, Hungary and Estonia – all members of the European Union who have tried to attract investment with low tax rates.
“It’s a process,” said Deese. “We’ll keep working on it. We’re not there. This is a milestone in the process, but a really strong signal of momentum towards the ultimate goal.”
Federal Treasury Secretary Olaf Scholz told reporters after meeting US Treasury Secretary Janet Yellen that he expected the EU to implement the global tax treaty quickly, even though several members refused to sign the treaty.
“I am optimistic,” he said, adding that he expects the Group of 20 major economies to join the Group of Seven (G7) to support the plan at the G7 tax officials’ meeting in Venice next week .
The OECD said an implementation plan and other remaining issues would be finalized by October, with the agreement expected to be implemented in 2023, according to the OECD.
The head of the International Monetary Fund, Kristalina Georgieva, also called on the denied countries to join the agreement on Thursday, as it was in their own interest. (Reporting by Andrea Shalal; additional reporting by David Lawder; writing by Andrea Shalal and Susan Heavey; editing by Aurora Ellis)