(OECD) The international community of 136 countries has agreed to a global tax system that will see multinational enterprises pay a minimum rate of 15% from 2023.
The deal allows the reallocation of at least $125 billion of profits from about 100 of the globe’s largest and profitable multinationals to countries worldwide.
The minimum tax deal follows years of intensive discussions and updates and puts an end to the political agreement established in July by the Inclusive Framework.
The agreement does not aim to eliminate tax competition between countries. It is expected to ease global tax disputes by bringing certainty.
Countries are now expected to sign a multilateral convention in 2022, which will act as a vehicle for the implementation of the newly agreed taxation.
The tax deal was finalized on Friday by OECD, with 136 countries and jurisdictions controlling at least 90% of the global GDP.
