From the minimum tax 125 billion per year

The Global Minimum Tax at the heart of the Rome Agreement is a tax that aims to ensure more equity for multinationals. That is to create greater correspondence between the countries in which the revenues are made and the one in which taxes are paid. The first of the two cornerstones concerns the taxation of about one hundred multinationals (with revenues exceeding 20 billion euros) which can also take place in the states where they make profits and not only in those in which they have tax residence. The second provides that the governments of the countries in which they carry out multinational activities with at least 750 million turnover can apply a minimum tax of at least 15%. In June, the proposal on the minimum tax was supported by the G7 and in early October it received the green light from 136 countries out of the 140 of the OECD / G20 Inclusive Framework. An agreement made possible by the accession of Ireland, Estonia and Hungary, which for a long time had opposed each other. Kenya, Nigeria, Pakistan and Sri Lanka have not joined the agreement, but those who did represent more than 90% of the global economy. The expected income is at least $ 60 billion for the US alone. The agreement will make it possible to redistribute the benefits of over 125 billion dollars realized by 100 multinational companies among the largest and most profitable in the world to countries around the world. The goal is also to discourage multinationals from shifting profits – and tax revenues – to low-tax countries. Increasingly, revenues from intangible sources such as drug patents, software and intellectual property royalties have migrated to more favorable jurisdictions. It also remains to create an international dispute resolution mechanism. With the new minimum tax, the European digital service tax that had provoked criticism from the US because it hit the big American technology companies will disappear. The agreement must now be turned into law in the various countries. The project for a global minimum tax on large companies was proposed by US Treasury Secretary Janet Yellen, last April, as part of the policy of the new Biden administration, which now has to deal with the Republican stumbling block at the Cong