Minimum Tax Rules Hobble Europeans, EU Parliament Report Warns

The revised global minimum tax agreement puts EU companies at a competitive disadvantage compared to US firms, a key European parliamentary committee says.

The OECD-led agreement agreed in January results “in different effective tax rates that disadvantage EU-headquartered MNEs operating in the United States,” while US-headquartered companies are exempt from most EU minimum tax rules, according to a draft report published Tuesday by the Economic and Monetary Affairs Committee.

The global 15% minimum corporate tax agreement, known as Pillar Two, was amended in January to exclude US companies from core provisions of the agreement. The revision was based ...