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July 02 2021, 5:39 PM
July 02 2021, 11:26 PM
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An unlikely group of European Union countries from far-flung corners of the bloc accounting for just 4% of its output is resisting worldwide consensus on a revamp of corporate tax.
Hungary, Estonia and Ireland are challenging proposals for a global minimum rate in its current form, casting a shadow over what appeared to be a breakthrough moment on Thursday in OECD talks over harmonizing company levies.
EXPLAINER: Deterring tax avoidance by global companies
David Mchugh
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FILE - In this June 7, 2017 file photo, the Organisation for Economic Co-operation and Development (OECD) headquarters is pictured in Paris, France. A broad swathe of the world s countries have agreed on a major overhaul of how to tax the world s biggest companies when they do business across borders. While the tax deal is complex in its details, the idea behind the minimum tax is simple: if a multinational company escapes taxation abroad, it would have to pay the minimum at home. A look at why it was proposed and how it would work. (AP Photo/Francois Mori, File) (Copyright 2021 The Associated Press. All rights reserved.)
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2021-07-01 22:36:11 GMT2021-07-02 06:36:11(Beijing Time) Xinhua English
PARIS, July 1 (Xinhua) A total of 130 countries and jurisdictions, representing more than 90 percent of global GDP, have joined a new two-pillar plan to reform international taxation rules, the Paris-based Organisation for Economic Co-operation and Development (OECD) announced on Thursday.
The reform framework, the outcome of negotiations coordinated by the OECD for much of the last decade, aims to ensure that large multinational enterprises (MNEs) pay tax where they operate and earn profits.
Under the framework, some taxing rights over MNEs, including digital companies, will be relocated from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there.
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Some 130 countries back deal on global minimum tax for companies
The agreement is an attempt to address challenges presented by a globalized and increasingly digital world economy in which profits can be relocated across borders.
By DAVID MCHUGHAssociated Press
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FRANKFURT, Germany Some 130 countries have agreed on a global minimum tax backed by President Biden as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates.
The agreement announced Thursday is an attempt to address challenges presented by a globalized and increasingly digital world economy in which profits can be relocated across borders and companies can earn online profits in places where they have no taxable headquarters.