The world’s major economies, including China and India, have signed a historic plan to impose a minimum global corporate tax rate of at least 15% on multinational companies and have them pay more taxes where they do business.
The agreement, signed by 130 countries after intense negotiations in Paris, will ensure that the largest companies-including tech giants-pay at least $100 billion in taxes each year. More money will flow to the countries where they do business the most.
The agreement was reached after negotiations at the Paris OECD and stated that the rules should be formulated next year and implemented in 2023.
Only 9 of the 139 countries involved in the negotiations refused to sign. The United States and other countries have exerted tremendous political pressure to ensure that all major G20 members, including China and India, reach agreement.
The new OECD Secretary-General Mathias Cormann welcomed the agreement, saying it would ensure that “large multinational companies pay a fair share of taxes everywhere.”