USCIB and other industry groups are urging the Trump administration to push back against efforts in the G20 and other multilateral forums to circumscribe the U.S.’s ability to tax overseas income of U.S.-based multinationals. USCIB, along with the Information Technology Industry Council (ITI), National Foreign Trade Council (NFTC) and U.S. Chamber of Commerce sent a joint letter to Secretary of the Treasury Steven Mnuchin requesting that the Trump administration take immediate action to ensure that tax principles that would adversely affect U.S.-based multinational companies and the rights of the United States to tax the income earned by such companies are not encouraged or endorsed by international bodies focusing on taxation rules, particularly those applicable to businesses operating in the digital economy.
The letter, in part, responds to the G7 Finance Ministers Communique on taxes which was released on May 13. The multi-association letter urges the Treasury not to make any new commitments on taxes. The letter also urges caution on expanding G20 commitments. It also urges the Treasury to nominate a delegate to the UN Committee of Tax Experts stating that it is important to have a U.S. voice on this committee. USCIB has learned that Treasury now intends to nominate a delegate to the UN Committee of Tax Experts.
The letter stated, “considerable pressure has been applied by other countries to modify the existing international framework of taxation laws in a way that would enhance the taxation rights of other countries at the expense of the United States and its interests. We are concerned that recently proposed “special measures” targeted at the digital economy, could reduce tax payments to the United States by U.S.-headquartered international companies and disadvantage U.S. companies attempting to compete overseas by increasing their tax obligations to the jurisdictions that adopt such measures.”