Most of the countries negotiating a global review of the international taxation of multinational corporations supported plans for new corporate tax place rules and a tax rate of at least 15%, the countries said on Thursday (1 ) after two days of negotiations.
The Organization for Economic Co-operation and Development (OECD), which led the talks, said a global minimum corporate income tax of at least 15% could generate around $ 150 billion in additional global tax revenue every year.
The organization said 130 countries, which account for more than 90% of global GDP (gross domestic product), supported the deal during the talks.
“With a global minimum tax in place, multinational companies will no longer be able to pit countries against each other in an attempt to reduce taxes,” US President Joe Biden said in a statement.
“They will no longer be able to avoid their obligations by hiding the profits generated in the United States, or in any other country, in less taxed jurisdictions,” he added.
The G7 agreed in June on a minimum tax rate of at least 15%. The deal will go to the G20 to gain political support at a meeting in Venice next week.
Technical details will be aligned by October so that the new rules can be implemented by 2023, according to a statement from countries that have backed the deal.
Among the nine countries that have not signed are low-tax members of the European Union, Ireland, Estonia and Hungary.