130 Economies Broadly Agree on OECD's Int'l Tax Proposal

Politics Lifestyle Economy

Tokyo, July 2 (Jiji Press)--Fully 130 economies agreed broadly on an international tax proposal released by the Organization for Economic Cooperation and Development on Thursday.

In online talks on international taxation rules, the OECD presented to 139 economies the proposal for introducing a digital tax on international companies with more than 20 billion euros in annual revenues and a profit margin of 10 pct. Of the 139 economies, 130 gave broad approval.

The proposal also calls for a global minimum corporate tax rate of at least 15 pct.

The moves are aimed at stopping tax avoidance by multinational corporations and ending a global race to the bottom on corporate taxes.

The OECD hopes to have the proposal implemented in 2023, after a related treaty is concluded and necessary domestic legal revisions are made in 2022.

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