OECD Agrees on 15 Pct Minimum Corporate Tax
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Tokyo, Oct. 9 (Jiji Press)--The Organization for Economic Cooperation and Development said Friday that 136 economies have reached a final agreement on international corporate taxation rules aimed at preventing tax avoidance by multinational companies.
The agreement, reached at an online conference of 140 relevant economies, features setting the minimum corporate tax rate of a universal 15 pct and imposing digital services taxes mainly on information technology giants with cross-border operations.
The package is a culmination of about nine years of discussions on strengthening international corporate tax rules.
The economies will introduce the new taxation rules in 2023 after concluding a treaty and making necessary legal amendments in 2022.
The introduction of the minimum tax rate is expected to help curb competition to lower corporate taxes, a long-standing issue facing the international community.
[Copyright The Jiji Press, Ltd.]