More than 130 countries agree to deal with the global corporate tax rate

The Organization for Economic Co-operation and Development announced on Friday that it has reached Deal on global corporate tax rates.

playing condition: More than 130 countries have backed a 15% minimum global tax rate after years of negotiations. Smaller countries – such as Ireland, Hungary and Estonia – opposed raising corporate tax rates because international companies were attracted to locations with lower tax rates, CNBC.

details: “The landmark deal, approved by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than $125 billion in profits from nearly 100 of the world’s largest and most profitable multinational corporations to countries around the world, This ensures that these companies pay a fair amount. tax wherever it operates and generates profits”, OECD She said.

  • The deal also sets new rules for the “digital age,” where giants like Amazon and Facebook are now required to pay fees to the countries where their products are sold regardless of whether or not they have headquarters, The New York Times Reports.

what are they saying: “Today’s agreement will make our international tax arrangements fairer and work better,” said OECD Secretary-General Matthias Kormann.

  • “This is a huge victory for effective and balanced multilateralism. It is a far-reaching agreement that ensures that our international tax system is fit for purpose in a global economy that is digitizing and globalizing. We must now work quickly and hard to ensure the effective implementation of this major reform.”
  • Treasury Secretary Janet Yellen, in a statmentShe described the deal as “a once-in-a-generation achievement for economic diplomacy.”

What then: The New Deal will enter into force in 2023.

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