Nearly 140 countries reach historic deal on global minimum corporate tax
- The agreement will bring sweeping changes to how big multinational companies are taxed and deter them from stashing profits in offshore havens
- Under Friday’s deal, countries would enact a global minimum corporate tax of 15 per cent on the biggest, internationally active firms
Nearly 140 countries have agreed on a tentative deal that would make sweeping changes to how big multinational companies are taxed and deter them from stashing profits in offshore havens where they pay little or no tax.
Under the agreement announced Friday, countries would enact a global minimum corporate tax of 15 per cent on the biggest, internationally active firms, reaping an estimated US$150 billion for government coffers once implemented.
“Today’s agreement represents a once-in-a-generation accomplishment for economic diplomacy,” US Treasury Secretary Janet Yellen said in a statement. She said it would end a “race to the bottom” in which countries outbid each other with lower tax rates.
“Rather than competing on our ability to offer low corporate rates,” she said, “America will now compete on the skills of our workers and our capacity to innovate, which is a race we can win.”
