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What is the global minimum tax for multinational corporations: a landmark agreement between 130 countries

What is the global minimum tax for multinational corporations: a landmark agreement between 130 countries

The historic agreement of the Organization for Economic Co-operation and Development with 130 Countries Who signed a new reform plan for tax collection international Which provides for a drastic change of course with respect to multinational companies pushدفع G7.

The document provides an update on the old key elements of the supranational tax system, which are unsuitable for the global and digital economy of the 21st century. The countries that joined account for 90% of the global GDP.

There are two pillars on which the document is based, which comes after many pillars Negotiation Harmonized by the Organization for Economic Co-operation and Development in the past decade, its goal is to ensure that multinational corporations pay taxes in the countries in which they operate and where profits accrue, while introducing a global minimum tax.

What is the global minimum tax for multinational corporations: two pillars

The first pole It is about a more equitable distribution of profits and tax rights between countries compared to the largest multinational companies, including digital giants.

This means that multinationals will no longer have to pay taxes only in the countries of origin, but also in all those markets in which they conduct their activities and where they profit, regardless of their physical presence in the territory.

The second column Rather, it is about imposing a rule on corporate income taxes – in Italy it isIRES – By entering the minimum joint tax rate 15th%, which can win you in general 150 billion dollars every year.

What is the global minimum tax and why is it beneficial for countries and companies

The package is also designed to support governments that need revenue to pay their money back debt and invest in Public servicesAnd the Infrastructure And measures to restart after covid-19 pandemic And the consequences of that Economic crisis.

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The global minimum tax for multinational corporations is also designed to give more certainty comp who, in the role of taxpayers, would no longer have to extricate themselves from the various regulations and taxes in each country in which they operate.

specific agreement without precedents, does not abolish competition between states, but imposes restrictions on all by mutual agreement, facilitating those countries that have tried to implement, for example, web tax For digital giants like Google and Amazon, they failed at the enterprise.

The participants in the negotiations expect the end of October 2021 Finalization of technical work on the two-pillar approach established with the OECD, and actual implementation of the plan in 2023.

What is the global minimum tax and why 9 countries oppose it

Nine countries have not signed the agreement. These are Barbados, Estonia, Ireland, Kenya, Nigeria, Peru, Saint Vincent and the Grenadines, Sri Lanka and Hungary. everybody havens tax Where corporate taxes are less than 15% which can become less attractive destinations for investors.