World News | Nearly 140 Countries Reach Deal on Corporate Minimum Tax
Get latest articles and stories on World at LatestLY. Nearly 140 countries have agreed on a tentative deal that would make sweeping changes to how big, multinational companies are taxed in order to deter them from stashing their profits in offshore havens where they pay little or no tax.
London, Oct 8 (AP) Nearly 140 countries have agreed on a tentative deal that would make sweeping changes to how big, multinational companies are taxed in order to deter them from stashing their profits in offshore havens where they pay little or no tax.
The agreement announced Friday foresees countries enacting a global minimum corporate tax of 15% on the biggest, internationally active companies. US President Joe Biden has been one of the driving forces behind the agreement as governments around the world seek to boost revenue following the COVID-19 pandemic.
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The agreement was announced by the Paris-based Organisation for Cooperation and Economic Development, which hosted the talks.
The OECD deal is an attempt to deal with the ways in which globalisation and digitalisation have changed the world's economy. Alongside the global minimum tax, the deal would let countries tax part of the earnings of companies whose activities don't involve a physical presence, such as internet retailing or web advertising. (AP)
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(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)