A global agreement to ensure that large companies will pay a minimum tax rate of 15% and make it harder for them to avoid taxation was reached by 136 countries, the Organization for Economic Co-operation and Development (OECD) announced on Friday.
The OECD says four countries – Kenya, Nigeria, Pakistan and Sri Lanka – have not yet joined the agreement.
“Today’s agreement will make international tax arrangements fairer and work better … This is a great victory for an effective and balanced multilateralism,” said OECD Secretary-General Matthias Corman.
US, France and Britain welcome global agreement on minimum tax rate – Switzerland demands more time and legal certainty
US Treasury Secretary Janet Yellen said: “We have turned the tough negotiations into decades of increased prosperity for both the United States and the world. Today’s agreement represents a major breakthrough for economic diplomacy.”
Switzerland today called for more time and legal certainty in the implementation of the new tax measures following the announcement of the Organization for Economic Co-operation and Development (OECD) reaching a global agreement on a minimum corporate tax rate.
“Switzerland calls for the interests of small, robust economies to be taken into account in implementation and for legal certainty to be established for these companies,” the finance ministry said in a statement, adding that it would not be possible to introduce the new rules until 2023, as provided by the OECD.
Paris considers the global tax agreement to herald a “fiscal revolution”.
The global agreement reached on a minimum tax rate of 15% for businesses will ensure that digital giants will pay a fair amount of tax to the countries where they earn their income, said today the French Minister of Finance Bruno Lemerre.
“This agreement paves the way for a real fiscal revolution,” Lemerre said on television.
For London, the tax reform agreement paves the way for a fairer system.
The British Minister of Finance Risi Sunak welcomed the cooperation of the world community after the tax reforms agreed by 136 countries, emphasizing that there is now a “clear path to a fairer tax system”.
“I am proud that the United Kingdom has taken the lead in global efforts to upgrade the global tax system to modern times – a key priority for our G7 presidency,” Sunak said in a statement.
“Now we have an open path to a fairer tax system, where the big global players will pay their fair share wherever they operate.”
European Commission President Ursula von der Leyen welcomes agreement on global tax reform
European Commission President Ursula von der Leyen welcomed today’s agreement on global tax reform.
“This is a historic moment. An important step forward in making our global tax system fairer. “The Commission strongly supports this international effort,” said Ursula von der Leyen in a statement issued by Brussels. At the same time, the President of the Commission expresses her gratitude to the Commissioner of Economy, Paolo Gentiloni, for his services and tireless work on this issue.
“I know that reaching this point requires difficult choices for many countries. “But we need to look at the long-term benefits of this agreement.”