This Saturday, G20 leaders endorsed a landmark international tax reform agreement that aims to eliminate tax havens by establishing a global minimum tax of 15% on the profits of multinational companies.
“Today, all G20 heads of state endorsed a historic agreement on new international tax rules, including a global minimum tax, that would end the race to cut corporate taxation,” Treasury Secretary Janet Yellen said in a statement.
The green light will be officially announced in the final G20 communiqué on Sunday, according to several sources close to the Rome talks.
This agreement was concluded in early October under the auspices of the Organization for Economic Cooperation and Development (OECD) 136 countries, which account for more than 90% of the world’s gross domestic product (GDP). The reform should allow these countries to generate an additional 150 billion in revenues per year from this minimum tax.
The agreement provides for the redistribution of part of the income tax paid by transnational corporations to the countries in which they operate. Thus, tax will no longer be paid only where companies are headquartered…
The target audience is companies that generate more than € 20 billion in invoices worldwide and whose profit margins exceed 10%.
The goal of the reform is to prevent multinational corporations and most of all GAFA (an acronym for the giants Google, Amazon, Facebook and Apple), which have benefited greatly from the pandemic and the COVID-19 limitation, from paying negligible taxes based on their income. …
The reform also allows the creation of 15% minimum rate of tax on profits of multinational corporationsthat the government could tax the profits of one of its local companies overseas, which would be taxed less overseas, to make up for the difference.
