Historic agreement in OECD headquarters to introduce a global minimum tax for multinationals. The agreement to ensure that large companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has been agreed by 136 nations. The OECD added that only 4 countries – Kenya, Nigeria, Pakistan and Sri Lanka – have not yet joined the agreement.
The 3 riotous countries are also convinced
The three EU countries that were finally convinced after strenuous discussions to accept the agreement were Ireland, Estonia and Hungary. “The major reform of the international tax system has been definitively agreed, it will guarantee the application of a minimum rate of 15% for multinationals starting from 2023,” the OECD said in a statement.
OECD Secretary General Mathias Cormann celebrated the agreement. “This will make our international tax regime fairer and more effective,” said the senior officer in a tweet.
Only 4 defections
“As many as 136 of the 140 members of the OECD / G20 Inclusive Framework – writes Cormann in a series of tweets published in the late afternoon – adhere to the agreement to reform our international tax system and make it fairer and so that it can work better”. These are “all the G20 countries, all the EU countries and all the OECD countries”, states the Australian number one in the OECD, adding that “it is a great victory for effective and balanced multilateralism”.
And again: «This is a far-reaching agreement that ensures that our international tax system adapts to a digital global economy. Now – concludes Cormann – we must work diligently to ensure the effective implementation of this major reform ».