Farmers Want Patronage Dividends Defined in Global Minimum Tax

An industry group representing US farmer cooperatives said the global minimum tax doesn’t provide a definition for the term “patronage dividends” and asked for further clarification in the levy’s rules.

In a comment letter released by the Treasury’s Office of Tax Policy on Tuesday, the National Council of Farmer Cooperatives asked the department to assure that “continued single tax treatment” under the US tax code is maintained in the global minimum tax rules.

The 15% global minimum tax, known as Pillar Two, is part of the global tax deal agreed to by more than 130 countries in October 2021.

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