EU finance ministers call on US to reconsider plans for US tax reform

Dec 18, 2017

Five EU finance ministers recently wrote to US Treasury Secretary Steven Mnuchin to express concern on the impact of planned US tax reform on World Trade Organisation (WTO) rules and double tax agreements.  “Certain less conventional tax provisions could contravene the US’s double tax agreements and distort international trade” according to the finance ministers of the UK, France, Germany, Italy and Spain. 

In their letter to the US Treasury Secretary, the finance ministers criticize the proposed 20% excise tax on US company purchases from their foreign subsidiaries, the proposed base erosion and anti-abuse tax (BEAT) and plans for a preferential tax of foreign-derived intangible income.