OECD announces major tax reform deal for multinationals


Paris:
The Paris-based Organization for Economic Co-operation and Development (OECD) announced that a major reform of the international tax system has been agreed, ensuring that multinational enterprises will be subject to a minimum 15 percent tax rate from 2023.

Some 136 countries and jurisdictions have agreed to the reform, Xinhua news agency quoted the OECD as saying in its announcement on Friday.

From 2023, the global minimum corporate tax rate of 15 percent will apply to companies with revenues of more than 750 million euros ($87 million).

The OECD explained that it is estimated to generate approximately $150 billion annually in additional global tax revenue.

The deal should reallocate more than $100 to $125 billion in profits to some of the largest and most profitable multinationals in the world, ensuring that these companies operate and make profits wherever they are. pays a fair share of the tax.

However, the OECD stressed that the agreement does not seek to eliminate competition by tax, but rather imposes multilaterally agreed limits.

“Today’s agreement will improve our international tax system,” said Mathias Cormann, Secretary-General of the OECD.

He said the deal is a major 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 digital and globalized world economy.

The OECD has confirmed that its members are aiming to sign a multilateral convention in 2022 for effective implementation of the new international corporate tax reform in 2023.

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