WASHINGTON, D.C. - Today, the U.S. Chamber of Commerce released a position statement on the undertaxed profit rule (UTPR) established by the European Union’s Pillar Two Directive. The directive implements the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules, which would impose a 15% global minimum tax regardless of where a company operates.
“The UTPR will hinder the competitiveness of American companies in global markets and force them to pay so-called ‘top-up taxes’ on their U.S. income to foreign governments, in breach of international law. And due to its prejudicial treatment of certain U.S. tax incentives relative to comparable ones offered by many EU jurisdictions, the UTPR will undermine U.S. public policy to increase domestic investment and innovation. The U.S. Chamber supports the legal action challenging the UTPR in the Belgium Constitutional Court," said Senior Vice President for Tax Policy Watson M. McLeish.
Learn more about the UTPR and its impacts to U.S. businesses and their ability to compete globally.
The statement was released today in support of the legal action brought by the American Free Enterprise Chamber of Commerce in the Belgian Constitutional Court to challenge the Belgium law adopting the UTPR.
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