Last week, Bruno Le Maire, France’s Minister of Finance announced that the country had banned the US’ proposal to allow multi-national corporations with US subsidiaries to be permitted to opt out of the new international tax system being proposed and developed by OECD nations.
US Secretary of the Treasury Steven Mnuchin wrote to the OECD proposing a ‘safe-harbour’ option for US companies, however Mr. Le Maire stated that the suggestion was completely unacceptable to France and other OECD members. Retorting to the US to accept that the new regulations will be inflexible on the following points:
Amend the current arm’s-length transfer pricing.
Taxable nexus standards will be binding to US companies with no exceptions.