Friday, January 21, 2022

Global agreement on minimum corporate tax rate clears last hurdle as Ireland signs on

Get more The Box amazon Deals and items The Box Proudly pick for you

A global agreement to set a minimum 15% corporate tax rate cleared its last major hurdle Thursday after Ireland, a low-tax country that is the European headquarters for some of the largest U.S. tech companies, said it would join the overhaul effort.

The change in Irish policy comes ahead of a Friday meeting of 140 governments and jurisdictions that have for years been negotiating a way of taxing international companies to limit avoidance and divide tax revenue in a way they say is fairer. The group seems likely to give its backing to a final agreement that would aim for implementation in 2023.

Ireland had been one of a small number of holdouts when the outlines of a global agreement were settled in July. That accord, driven by the U.S., aims to overhaul the way multinationals are taxed, the culmination of a yearslong effort to squeeze tax-avoidance arrangements.

If the needed changes to national law and international treaties are made, it would be the most sweeping change in international taxation in a century. In addition to setting a minimum rate that would likely see a number of the world’s largest companies pay more tax, existing tax revenues would be divided among governments so that countries where businesses have customers would get more revenue. That overturns a longstanding principle of international taxation, under which profits are taxed where value is generated, which traditionally was where businesses had a physical presence.

An expanded version of this report can be found at WSJ.com

This artical is first shown on Market Watch Source link Author on date 2021-10-08 06:15:00
MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron’s, it is a subsidiary of Dow Jones & Company, a property of News Corp.

BEST

Amazon Deals

Get the best Amazon promotions and deals. Fast delivery and free returns on eligible items. Discover millions of products available from Amazon

Trending

More Articles Like This