Pic of the Day


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A fisherman paddles through mangrove trees at the Tam Giang Lagoon in the Hue province of Vietnam. Mangroves lose all their leaves in winter, exposing their whitish trunks.
Photograph by Pham Huy Trung
Siena International Photo Awards 2021

OECD reaches landmark deal on a global corporate tax rate

The Organization for Economic Cooperation and Development on Friday announced a major breakthrough on corporate tax rates, after years of disagreement.

The group of developed nations agreed to a global minimum corporate tax rate of 15%. This marks a huge shift for smaller economies, such as the Republic of Ireland, which have attracted international firms — to a large extent — via a lower tax rate…

“The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MultiNational Enterprises to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits,” the OECD said in a statement Friday…

The breakthrough comes after some changes were made to the original text, notably that the rate of 15% will not be increased at a later date, and that small businesses will not be hit with the new rates…

Countries now have to work out some outstanding details so the new deal is ready to kick in during 2023.

Most of the hard work for most of the countries ready to sign on to this extraordinary deal is done and dusted. Part of getting to this announcement included the tweaks needed to bring on the broadest coalition possible. The agreement is between experienced international negotiators with a strong voice in enabling the process in their home countries.

We’re going to have a unique problem here in the GOUSA. Changes in tax relationships with other nations can only become reality via treaty law in the United States. Anyone ready to hazard a guess on whether you think the United States can sort out an international treaty of this scope in the next two years?