Historic OECD agreement between 136 countries: 15% minimum tax on multinational corporations

Historic agreement at OECD headquarters to introduce a global minimum tax for multinational corporations. 136 countries have agreed to the agreement that ensures large companies pay a minimum tax rate of 15% and makes it difficult for them to avoid taxes. The OECD added that only 4 countries – Kenya, Nigeria, Pakistan and Sri Lanka – had not yet joined the agreement.

The three troubled countries are also convinced

The three European Union countries that were finally convinced after painstaking discussions to accept the agreement were Ireland, Estonia and Hungary. “A major reform of the international tax system has been finally agreed upon, and will ensure the application of a minimum rate of 15% for multinational companies starting in 2023,” the OECD said in a statement.

The agreement was celebrated by OECD Secretary-General Matthias Kormann, saying: “This will make our international tax system more fair and efficient,” the Senior Director emphasized in a tweet on Twitter.

4 splits only

“Up to 136 of the 140 members of the OECD/G20 Comprehensive Framework for Action – Corman wrote in a series of tweets published in the late afternoon – are committing to the agreement to reform our international tax system, make it fairer and make it work better.” These are “all the G20 countries, all the EU countries and all the OECD countries,” as Australia ranked first in the Organization for Economic Co-operation and Development, adding that it was “a huge victory for effective and balanced multilateralism.”

And again: “This is a far-reaching agreement that ensures that our international tax system adapts to the global digital economy. Now – concludes Corman – we must work hard to ensure effective implementation of this major reform.”