The world’s leading economies, including China and India, have signed up to a historic plan to levy a global minimum corporate tax rate of at least 15 per cent on multinational companies and also make them pay more tax where they do business.
The agreement, signed by 130 countries following intense negotiations in Paris, will ensure the largest companies — including tech giants — pay at least $100bn a year more in taxes. More of this money will go to the countries where they do most business.
The deal was reached after negotiations at the OECD in Paris, and says that the rules should be put in place next year and implemented in 2023.
Only nine of the 139 countries involved in the talks refused to sign up. Huge political pressure was exerted by the US and other nations to secure the agreement of all leading G20 member states, including China and India.
Mathias Cormann, the new OECD secretary-general, hailed the agreement, saying it would ensure that “large multinational companies pay their fair share of tax everywhere”.