130 countries support US plan for more taxes on multinational corporations

130 countries support US plan for more taxes on multinational corporations

This was announced by the Organization for Economic Co-operation and Development (OECD). A small group of countries affiliated with that organization do not support the plan.

The tax plan must ensure that companies operating in multiple countries pay taxes in all of those countries. As a result, multinational corporations do not have to pay taxes on a portion of the profits in the home country, but they do have to pay taxes in the countries where the profits have already been made. Companies do not need to have an office in the countries in which they operate. In addition, the minimum profit tax for those companies worldwide will be increased to 15 percent.

additional tax income

It is expected to generate more than $100 billion in annual profits. Raising the minimum global tax rate to 15 percent is expected to generate about $150 billion in additional tax revenue worldwide each year.

Of the 139 countries that participated in the debate on a new tax plan, nine do not or do not yet support it. One country that does not support the plans is Ireland, which, like the Netherlands, is considered a tax haven by many other European countries. The Irish government wants to stick to the 12.5 per cent tax rate for large companies, which the Irish have been able to attract many US tech companies such as Apple and Facebook.

Other countries that did not support the US plan include Barbados, Estonia, Hungary, Kenya, Nigeria, Peru, Saint Vincent and the Grenadines, and Sri Lanka.

Read more:

Historic tax deal

Companies like Amazon and Facebook have to pay taxes where sales take place

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