Tax havens are also part of the transaction
The promotion of a unified corporate tax policy around the world is being supported by 130 countries agreeing to the proposal.
The Organization for Economic Cooperation and Development said that once the transaction is ratified, large companies, including Google and Amazon, will pay at least 15% of tax.
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The new tax policy will bring $150 billion in tax revenue to governments around the world.
In the recent Progrès of the lecture, all countries within the G20 group, including Brazil, China, India and Russia, reached an agreement on the London G7 in June.
A small number of countries, including Ireland and Estonia, have not yet registered for tax reform.
“This framework updates key elements of the first century international tax system that are no longer suitable for purpose in a globalized 21st century economy,” the OECD said.
President Joe Biden said the deal would bring the world to an agreed policy that “stops competition to the bottom due to corporate taxes.”
Many countries and jurisdictions known as tax havens are also part of the transaction.
The contract Jist means that you must pay a minimum of 15% tax in all countries run by major companies.
“After years of intense work and negotiations, this historic package ensures that large multinational companies pay substantial taxes everywhere,” added Mathias Cormann, executive director of the OECD.
Prime Minister Rishi Sunak is seeking exemptions from the city of London in the G7 moves of the new global tax system targeting the world’s largest multinational corporations.
Sunak previously said the recent contracts are “historic,” but the biggest tech companies will force them to “pay fair taxes in the UK.”
However, the Financial Times reported that the UK is one of many countries seeking a “financial services exemption.” The Prime Minister fears that London-based multinational banks will be affected.
