US policy makers are concerned that American sovereignty will be hurt by how tax credits under the global minimum tax framework are treated, a tax executive said Thursday.
Discussions are ongoing at the Organization for Economic Cooperation and Development about tax credit calibration under the Pillar Two framework, one half of the OECD’s global tax deal.
Currently, refundable tax credits are treated as income under the OECD’s Inclusive Framework, and are distinguished from nonrefundable tax credits, which can pull a company below the global minimum 15% tax and trigger a top-up tax.
US policy makers are frustrated that the country’s ...