Insurance Europe has written to the European Commission calling for urgent action to be taken in response to the United States’ decision to withdraw support for the global minimum tax initiative.
In a letter addressed to EU Commissioner Wopke Hoekstra, Insurance Europe expresses concern about the current US administration’s decision to abandon the global minimum tax and the suggestion that it may also pursue retaliatory tax measures targeted at residents of countries implementing rules the US considers extraterritorial.
Such a shift puts at risk the global competitiveness of European companies - including insurers - by exposing them to unreciprocated regulatory and fiscal burdens.
In response, Insurance Europe calls on the EU to:
• Raise the question of suspending the global minimum tax
• Lead international discussions at the OECD and G20 to ensure that future global tax rules are equitable and do not disadvantage EU-based companies
• Undertake a thorough reassessment of its position on minimum taxation
If the global minimum tax is to continue, Insurance Europe calls for significant simplification of the rules. The federation also urges the Commission to streamline overlaps within the EU tax framework to improve efficiency and reduce unnecessary compliance burdens.