US Secretary of State Antony Blinken (frontL) attended the closing session of the Organization for Economic Co-operation and Development’s Ministerial Board meeting in Paris in October, with Sylvia of the OECD Board and Executive Committee Secretariat (SGE / CES).・ Lecture on Da Lin Pagnet (frontR). June 6, 2021.
Patrick Semanski | AFP | Getty Images
On Friday, the Organization for Economic Co-operation and Development announced a major breakthrough in corporate tax rates after years of disagreement.
Developed country groups have agreed globally Minimum corporate tax rate of 15%.. This represents a major shift for small economies, such as the Republic of Ireland, which have attracted most of the international companies at lower tax rates.
“The groundbreaking deal agreed by 136 countries and jurisdictions, which account for more than 90% of the world’s GDP, will generate more than US $ 125 billion in profits from about 100 of the world’s largest and most profitable multinational companies. We will redistribute it to countries around the world and ensure that these companies pay. OECD will pay a fair tax burden wherever it operates and makes a profit, in a statement on Friday. ” ..
Breakthroughs occur after some changes have been made to the original text. In particular, the 15% rate will not be raised at a later date and SMEs will not be hit by new rates.
This helped Ireland — Long-standing opponents of raising corporate tax rates — Participating in the plan.
Hungary, another long-term skeptic about global tax transactions, also changed his mind after being reassured that it would take longer.
Countries now need to consider some good details so that they are ready to launch the New Deal by the end of 2023.
The transaction represents a shift in taxation, not only imposing a minimum corporate tax rate, but also forcing companies to pay taxes not only where their headquarters are located, but also where they do business.
The exact formula for calculating how many companies are renting across the various jurisdictions is one detail that still needs to be finalized.
Announcements from international leaders are also coronavirus A pandemic that renewed the need for fairer taxation, given that the government is fighting for new sources of funding.
When elected in 2020, President Joe Biden revealed that he wanted to tax the wealthy more in an attempt to address US inequality.
OECD reaches corporate tax agreement after Ireland agrees
Source link OECD reaches corporate tax agreement after Ireland agrees
The post OECD reaches corporate tax agreement after Ireland agrees appeared first on Eminetra.