Global Minimum Corporate Tax Rate: Financial Times

Multinationals can sell products and services in more than 200 nations, and many, especially big technology firms, shift profits across borders to minimize tax bills. The Organization for Economic Co-operation and Development, which represents democracies, is reviewing global tax policies: one recommendation would allow countries to tax operations even if the companies have no physical presence, and the other is the minimum corporate tax. “Together the two proposals aim to eliminate the huge advantages some companies enjoy by shifting profits around the world to minimise their tax bills — a strategy that has become particularly common among those involved in digital technologies,” explains Chris Giles for Financial Times. “The proposals would also reduce the incentives for countries to lower their tax rates in an effort to attract such footloose businesses.” If OECD and G20 countries agree, the proposals could be added to national tax systems and treaties. Giles notes that countries approve because they want to avoid a patchwork of stringent measures. Discussions focus on guiding principles and have yet to designate a specific tax level. – YaleGlobal

Global Minimum Corporate Tax Rate: Financial Times

OECD proposal for a minimum corporate tax would create safety net for countries to ensure no multinational corporation escapes taxation at home
Chris Giles
Sunday, November 10, 2019

Read the article from Financial Times  about a proposal for a minimum corporate tax.

Chris Giles became economics editor for the Financial Times in October 2004, having previously served as a leader writer. His reporting beat covers global and UK economic affairs and he writes a UK economics column fortnightly.

 Bermuda, Cayman, more 	0% Ireland	12% UK	19% Denmark	20% S Korea	22% Indonesia 	22% Netherlands 	23% China 	24% S Africa	27% Germany	27% Japan 	28% Brazil 	30% France	33% US	38% India	44%

World of rules: Average effective tax rates vary among nations and take into account varying fiscal depreciation rules, allowances and deductions (OECD Corporate Tax Statsitics Database, 2017)

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