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Global Minimum Tax Proposal Led By US In G7 Meet Gets Backing From 130 Nations
As part of a global effort, 130 countries have agreed on a global minimum tax for companies, which is backed by US President Joe Biden; said OECD.
Picture Credit: AP
A global minimum tax, backed by US President Joe Biden, has been agreed upon by 130 countries as part of a global attempt to prevent multinational corporations from avoiding taxes by moving earnings to countries with low rates. The deal unveiled on Thursday, July 1, is an attempt to solve the issues posed by a globalised and increasingly digital world economy in which profits may be moved across borders and corporations can make online profits in locations where they do not have taxable headquarters.
By Reuters Staff
3 Min Read
DUBLIN (Reuters) -Ireland declined on Thursday to sign a statement backed by 130 of 139 countries negotiating a global overhaul of the taxation of multinational companies, balking at a proposed minimum rate of 15%, its finance minister said.
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Paschal Donohoe, also president of euro zone’s grouping of finance ministers, said Ireland supported much of the agreement and would continue to negotiate up to an October deadline.
A statement by the 130 countries at the Paris-based Organisation for Economic Cooperation and Development backed plans for a minimum tax rate and taxing more of the profits of the biggest multinationals in countries where the profits are earned.
4 Min Read
LONDON (Reuters Breakingviews) - Just organizing a meeting of 130 people is hard. Getting that number of governments to agree on a corporate tax regime is an astonishing achievement. That makes a new deal, whose signatories account for more than 90% of world GDP, worth celebrating despite its flaws.
3D printed percentage symbols are seen in front of dollar banknotes in this illustration taken May 25, 2020. REUTERS/Dado Ruvic/Illustration
The Paris-based Organisation for Economic Co-operation and Development said on Thursday that all but nine of the 139 countries negotiating an overhaul of global tax rules had agreed a two-part plan. The meatiest bit is a new minimum corporate tax rate of at least 15%, an old idea that was given new life by U.S. Treasury Secretary Janet Yellen’s support in April. The countries will also divide up a portion of the biggest multinationals’ profits based on where sales are made rather than where earnings are declared.
130 countries back global minimum corporate tax of 15%
FILE PHOTO: The word taxes is seen engraved at the headquarters of the Internal Revenue Service (IRS) in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly
July 2, 2021
By Leigh Thomas
PARIS (Reuters) -Most of the countries negotiating a global overhaul of cross-border taxation of multinationals have backed plans for new rules on where companies are taxed and a tax rate of at least 15%, they said on Thursday after two days of talks.
The Paris-based Organisation for Economic Cooperation and Development, which hosted the talks, said a global minimum corporate income tax of at least 15% could yield around $150 billion in additional global tax revenues annually.
Friday, 02 Jul 2021 05:31 AM MYT
The Group of Seven advanced economies agreed in June on a minimum tax rate of at least 15 per cent. Reuters pic
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NEW YORK, July 2 Most of the countries negotiating a global overhaul of cross-border taxation of multinationals have backed plans for new rules on where companies are taxed and a tax rate of at least 15 per cent, they said on Thursday after two days of talks.
The Paris-based Organisation for Economic Cooperation and Development, which hosted the talks, said a global minimum corporate income tax of at least 15 per cent could yield around US$150 billion (RM623.8 billion) in additional global tax revenues annually.