Global minimum tax is here, US proposes a rate of 15%

Updated : May 21, 2021 14:12
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Editorji News Desk

Corporations around the world should pay at least a 15% tax on their earnings this is the call coming in for the US Treasury as it proposes a global minimum tax. 

Major economies are looking to discourage internationally present companies from shifting profits  and tax revenues - to low-tax countries regardless of where their sales are made.

So if companies pay lower rates in a particular country like Ireland or Bermuda their 'home' governments could "top-up" their taxes to the agreed minimum rate, eliminating the advantage of shifting profits to a tax haven.

Next step comes in with OECD and G20 to agree on a rate and also applicability norms. 

Janet YellenGlobal Minimum Tax

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