Organization for Economic Co-operation and Development (OECD) Secretary-General Matthias Corman said today that an important international agreement on universal taxation of multinational companies, which was supported at the G20 summit, would make taxation fairer and help governments fund pandemic recovery.
He said the agreement would “make international tax arrangements fairer and function better in a digitalized and globalized economy”.
The agreement was reached in early October by 136 countries under the auspices of the Paris-based OECD, and will be officially confirmed in the final announcement of the G20 summit on Sunday. The new rules should take effect in 2023.
The agreement stipulates that the countries where the headquarters of multinational companies are located will introduce a global corporate tax of 15 percent.
States will now be able to levy taxes from companies even if they have already paid lower taxes in other states to make up the difference to a minimum of 15 percent.