G20 countries endorse OECD’s proposal to introduce global corporate tax rate of 15%
The heads of the G20 countries’ financial departments approved a plan on reforming the taxation of international groups of companies.
The G20 leaders upheld the proposal, put forward by the Organization for Economic Cooperation and Development (OECD), to introduce a global minimum tax rate for transnational corporations at the level of 15%, according to the G20 leaders’ declaration signed following the summit on Sunday.
In the document, the OECD’s initiative is praised as "a historic achievement through which [the G20 states] will establish a more stable and fairer international tax system." The G20 leaders also called on the OECD to swiftly develop relevant model regulations, as well as multilateral instruments, so that new tax rules went into effect all over the world in 2023.
On October 8, the OECD announced that its member states had reached an agreement on introducing a global minimum tax corporate rate of 15% for firms with over 750 mln euros in revenues. The countries plan to sign a multilateral convention in 2022 with further implementation in 2023. The tax rate will apply to such giants as Apple, Google, Microsoft, the Pfizer and Johnson & Johnson pharmaceutical companies.
Another agreement involves the redistribution of tax revenues from major global companies. A part of the tax payment will be transferred from the countries, where the company’s head office is located, to those states where the firms operate and make a profit.
The heads of the G20 countries’ financial departments approved a plan on reforming the taxation of international groups of companies. An agreement was reached during a meeting of finance ministers in July in Venice, and, after that, consolidated at a joint meeting of the ministers and heads of central banks in October in Washington.
On October 13, Russian Finance Minister Anton Siluanov stated that Russia would sign an agreement on global corporate tax rate in 2022.
Source
The G20 leaders upheld the proposal, put forward by the Organization for Economic Cooperation and Development (OECD), to introduce a global minimum tax rate for transnational corporations at the level of 15%, according to the G20 leaders’ declaration signed following the summit on Sunday.
In the document, the OECD’s initiative is praised as "a historic achievement through which [the G20 states] will establish a more stable and fairer international tax system." The G20 leaders also called on the OECD to swiftly develop relevant model regulations, as well as multilateral instruments, so that new tax rules went into effect all over the world in 2023.
On October 8, the OECD announced that its member states had reached an agreement on introducing a global minimum tax corporate rate of 15% for firms with over 750 mln euros in revenues. The countries plan to sign a multilateral convention in 2022 with further implementation in 2023. The tax rate will apply to such giants as Apple, Google, Microsoft, the Pfizer and Johnson & Johnson pharmaceutical companies.
Another agreement involves the redistribution of tax revenues from major global companies. A part of the tax payment will be transferred from the countries, where the company’s head office is located, to those states where the firms operate and make a profit.
The heads of the G20 countries’ financial departments approved a plan on reforming the taxation of international groups of companies. An agreement was reached during a meeting of finance ministers in July in Venice, and, after that, consolidated at a joint meeting of the ministers and heads of central banks in October in Washington.
On October 13, Russian Finance Minister Anton Siluanov stated that Russia would sign an agreement on global corporate tax rate in 2022.
Source