More than 145 countries have agreed to amend the 2021 global minimum corporate tax agreement, addressing concerns raised by Washington that the initial rules could unfairly penalise US multinational corporations. The Organisation for Economic Cooperation and Development (OECD) announced that this updated package maintains the core framework of a 15 per cent global minimum tax, designed to ensure that large multinational companies pay a baseline level of tax regardless of where they operate.
The amendments include simplifications and carve-outs intended to better align US minimum tax laws with global standards. These changes accommodate earlier objections that were initially raised by the Trump administration. OECD head Mathias Cormann stated that this revised arrangement will enhance tax certainty, reduce complexity, and protect tax bases for participating countries.
As of October, over 65 countries had already commenced implementing the 2021 global tax deal. This deal mandates that nations either apply a 15 per cent corporate tax or impose a top-up levy on multinational companies that book profits in jurisdictions with lower tax rates. The OECD facilitates international co-operation on economic and social policies.
This broader agreement, reached after Washington pressured previously reluctant nations to support the updated arrangement, is expected to further stabilise the global tax deal, reinforcing the commitment made by G7 countries in June to exempt certain US companies from specific aspects of the original framework.
