Leaders of the G20, the 20 largest economies in the world, have endorsed the OECD-led plan to implement new taxation rules for multinational companies, including a minimum income tax rate of 15 percent. At their summit in Rome, the G20 leaders agreed to work towards implementation of the new rules in 2023.
The details of the so-called two-pillar solution to increasing tax receipts from multinationals were agreed in October by 136 countries and jurisdictions, representing 94 percent of global GDP. The OECD estimates that, once implemented, the plan will reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable multinational enterprises to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits. With the new global minimum corporate tax rate, countries should collect around USD 150 billion in new revenues annually, the OECD said.
