Top Line

Organisation for Economic Cooperation and Development announced that friday 136 Countries representing more than 90% of international GDP have agreed to tax reforms, including the establishment of a 15% minimum corporate rate starting in 2023, the practice of shifting the operations of multinational companies to tax havens To terminate involves terminating a long-sought deal.

important facts

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Under the “two-pillar” solution, the OECD estimates that more than $125 billion will be reallocated to some of the planet’s largest multinationals.

Remedy is now supported by all OECD And G-20 Member states – which have all set lower tax rates to attract international businesses – rode on the initial holdouts, followed by Estonia, Hungary and Ireland.

Only four countries did not participate: Kenya, Nigeria, Pakistan and Sri Lanka.

big number

$1 trillion. IRS Commissioner Charles Retigo estimates how much tax evasion in the United States each year told the Senate in April.

main background

The new 15% minimum rate will apply to businesses with revenues of at least $867 million (€750 million), including multibillion-dollar behemoths such as Amazon, Apple and Facebook. In addition, the OECD scheme also contract of that multinational enterprises must pay a “fair share” of taxes wherever they do business, regardless of whether they have a physical presence there or not. It comes as the Biden administration supports the agreement War To increase taxation on corporations and wealthy citizens to fund the “Build Back Better” plan. Earlier this month the Pandora Papers detailed how some of the world’s most powerful people hide billions of dollars in taxes using shell companies and offshore accounts.

what to see

The OECD plan will be taken up at the G20 finance ministers meeting in Washington DC next Wednesday, ahead of the G20 Leaders’ Summit in Rome later this month.

OECD settles corporate tax after Ireland agrees(CNBC)

Has reached global lowest corporate tax rate: OECD“(Reuters)

Global Tax Deal Close to Hungary, a Low-Tax Holdout, Signs on“(the new York Times)

“130 countries agree to a Biden-backed 15% global minimum tax” (Businesshala)

“Pandora Papers: Major World Leaders—King Abdullah II, Tony Blair, Lady Babis—Allegations of Secret Offshore Financial Dealings” (Businesshala)

Pandora Letter(International Consortium of Investigative Journalists)