136 countries agree to 15% global minimum corporate tax rate

The Organization for Economic Cooperation and Development (OECD) says that one hundred and thirty-six countries have agreed to a global minimum corporate tax rate of 15%, expected to begin in 2023.

“The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than $125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits,” the OECD said in a statement.

The new 15% minimum rate will apply to businesses with revenues of at least $867 million (€750 million), which includes multibillion-dollar behemoths such as Amazon, Apple and Facebook.

Beyond that, the OECD plan also stipulates that multinational enterprises will have to “pay a fair share” of taxes wherever they do business regardless of whether or not they have a physical presence there.

It comes as the Biden administration, which supports the agreement, has been fighting to increase taxation on corporations and wealthy citizens to fund the “Build Back Better” plan.

Earlier this month the Pandora Papers detailed how some of the world’s most powerful people hide billions of dollars’ worth of taxes using shell companies and offshore account