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Related video: G7 nations reach historic deal to tax multinational corporations
Plans to force multinational companies to pay fairer tax by setting a global minimum have taken a step forward with the backing of 130 countries and jurisdictions, the Organisation for Economic Cooperation and Development announced on Thursday.
The US-backed deal sets a corporation tax rate of no less than 15 per cent in a bid to discourage companies from moving from one country to another to exploit lower rates.
G7 leaders gave their approval at the summit in Cornwall last month. Collectively, countries that have agreed to the plan represent more than 90 per cent of the world’s GDP.
130 countries back global minimum corporate tax rate of 15 per cent, OECD says Gustaf Kilander
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Plans to force multinational companies to pay fairer tax by setting a global minimum have taken a step forward with the backing of 130 countries and jurisdictions, the Organisation for Economic Cooperation and Development announced on Thursday.
The US-backed deal sets a corporation tax rate of no less than 15 per cent in a bid to discourage companies from moving from one country to another to exploit lower rates.
G7 leaders gave their approval at the summit in Cornwall last month. Collectively, countries that have agreed to the plan represent more than 90 per cent of the world’s GDP.
Global tax deal backed by 130 nations
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published : 2 Jul 2021 at 08:45 US digital giants are the main targets of the new tax.
PARIS: A total of 130 countries have agreed a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday, but some EU states refused to sign up.
The Organization for Economic Co-operation and Development said in a statement that global companies, including US behemoths Google, Amazon, Facebook, and Apple would be taxed at a rate of at least 15% once the deal is implemented.
The new tax regime will add some $150 billion to government coffers globally once it comes into force, which the OECD said it hoped would be in 2023.
That minimum tax rule will prevent multinationals making use of tax havens and is expected to result in an additional US$150b (NZ$215b) of tax being collected by tax authorities each year, globally. A second rule will allow countries to claim a share of any excess global profits earned by the world’s very largest multinationals, even in situations where they only exported products or services to that country and would not normally be subject to local taxation.
British chancellor Rishi Sunak hailed the multinational tax plan as one that would bring fairness when it was endorsed by the G7 last month.
Global tax deal backed by 130 countries
Posted : 2021-07-02 11:28
Updated : 2021-07-02 11:28
In this June 7, 2017, file photo, the Organisation for Economic Co-operation and Development (OECD) headquarters is pictured in Paris. Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates. AP-Yonhap
A total of 130 countries have agreed a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday, but some EU states refused to sign up.
The Organization for Economic Co-operation and Development said in a statement that global companies, including U.S. behemoths Google, Amazon, Facebook, and Apple would be taxed at a rate of at least 15 percent once the deal is implemented.