UK LABOR PARTY PUSHES VOTE ON US MINIMUM CORPORATE TAX PLAN

Britain's main opposition Labor Party said it will push for a vote in parliament on Monday over support for US plans to introduce a global minimum corporation tax rate, Reuters reported.

The US Treasury Department earlier this week said it would accept a floor of at least 15% during international negotiations, a rate significantly below its proposed 21% minimum for US multinational firms.

The Biden administration's proposed Global Intangible Low-Taxed Income tax (GILTI) rate of 21%, aimed at capturing revenue shifted by companies to tax-haven countries, was widely viewed as a starting point for renewed Organization for Economic Cooperation and Development (OECD) talks on a global minimum tax.

While France and Germany backed 21%, other countries have pushed for a lower rate, as previous OECD discussions on the subject had centered around 12.5%, the same rate charged by Ireland.

Britain will raise its main corporation tax rate to 25% from 19% in 2023, finance minister Rishi Sunak announced earlier this year.

Labor is tabling an amendment to the Finance Bill.

"This global pact will bring in extra tax benefitting Britain while stopping huge multinationals and online giants from undercutting our businesses," said Labor finance spokeswoman Rachel Reeves.

Britain's finance ministry has said reaching an international agreement on how large digital companies are taxed "is a priority" and that "we welcome the US’ renewed commitment to tackling the issue and agree that minimum taxes might help to ensure businesses pay tax."

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