Officials from 130 countries and jurisdictions have thrown their support behind the United States proposal to require a minimum global tax for corporations starting at 15 per cent.
The Wall Street Journal reported the agreement following a virtual meeting of 130 nations and jurisdictions, including all of the Group of 20 member states.
A press release from the Organisation for Economic Co-operation and Development says together the economies represent 90 per cent of the global gross domestic product which coordinated the negotiations.
India and China were among the countries to approve the proposal after initially opposing it.
The move represents the largest overhaul of the global tax system in more than a century and has the potential to curb tax avoidance by corporations that move their operations to countries with lower tax rates to avoid paying up.
The OECD’s director says an estimated $240bn per year is lost because of tax avoidance by multinational companies.
Officials from 130 countries and jurisdictions have thrown their support behind the United States proposal to require a minimum global tax for corporations starting at 15 per cent.
The Wall Street Journal reported the agreement following a virtual meeting of 130 nations and jurisdictions, including all of the Group of 20 member states.
A press release from the Organisation for Economic Co-operation and Development says together the economies represent 90 per cent of the global gross domestic product which coordinated the negotiations.
India and China were among the countries to approve the proposal after initially opposing it.
The move represents the largest overhaul of the global tax system in more than a century and has the potential to curb tax avoidance by corporations that move their operations to countries with lower tax rates to avoid paying up.
The OECD’s director says an estimated $240bn per year is lost because of tax avoidance by multinational companies.
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