Officials from 130 countries on June 1 agreed to establish a new framework for international tax reform, the Organisation for Economic Cooperation and Development (OECD) announced. The two-pillar package would mean that multinational companies, including Big Tech, would be forced to pay a minimum 15 percent tax in each country they operate in, regardless of whether firms have a physical presence there. This would remove the incentive to use tax havens and legal schemes to shift profits to low-rate countries where they do little or no business. The OECD said more than $100 billion in profit is expected to be reallocated to market jurisdictions each year, while about $150 billion is expected to be raised from the global minimum tax rate. “Additional benefits will also arise from the stabilisation of the international tax system and the increased tax certainty for taxpayers and tax administrations,” the organization added. The organization said 130 countries, including the United States, UK, …
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