130 countries support the G7’s plan for a 15 percent minimum corporate tax rate. This is reported by the Organization for Economic Co-operation and Development (OECD), which is trying to reach tax agreements with 139 countries. Nine countries therefore did not support the proposal.
The minimum rate should lead to more than EUR 125 billion in additional tax revenues according to the OECD, but that amount depends on the implementation. The OECD wants to complete this by October, together with a plan for applying the new rules in 2023.
Part of the agreement is that large multinationals pay tax in all countries where they operate, not just in the country where their headquarters are located.
According to the OECD, the agreement updates the old international tax system, which is no longer appropriate for a globalized and digitized economy. Countries representing more than 90 percent of the global economy, including China, the US, India and the bulk of the EU, voted in favor of the proposal.
Outgoing State Secretary Vijlbrief, responsible for the Tax and Customs Administration, is pleased with the agreement:
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