UK due to secure exemption for City of London banks from regulations brokered at OECD
The UK is poised to secure an exemption for financial services from new global rules on taxing multinationals, in a move that would ensure the City of London’s largest banks do not pay more tax on their profits in other countries.
The talks at the Paris-based OECD, which are due to conclude on Thursday, have accepted Britain’s case that the financial services industry be carved out of the proposed new global tax system, according to two people briefed on the negotiations.
But UK chancellor Rishi Sunak’s victory in haggling over the details of new corporate levies came at a cost, said these people. He had to make concessions to the US on dismantling Britain’s digital services tax that is focused on American technology companies.
The carve-out for financial services came in the first part of the global tax negotiations at the OECD club of rich nations, which are seeking to define where the largest multinationals have to pay tax in the future.
The second part of the talks is focused on agreeing a global minimum corporate tax rate of at least 15 per cent, to stop companies shifting profits to low-tax jurisdictions....
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