At the OECD meeting on Friday, there was a breakthrough in the initiative launched by the USA to raise the global corporate tax to 15%. Ireland, which has so far opposed the measure – and many low-cost companies, including Google’s parent company, Alphabet – are also attracted by low taxes – has also filed its waist.
The agreement thus accounts for 136 countries, for a total of more than 90% of world GDP. The change in tax rules will be felt mainly by large U.S. technology companies, with a total of $ 125 percent of U.S. profits being taxed under the new regulations.
It will also be an important change for international companies from now on they will have to pay the relevant tax in the country where they actually operate, not just in their home country; – as they have done so far.
Raising the corporate tax to a minimum limit of 15% is, of course, the absence of countries where the corporate tax rate is currently not lower than Ireland and Hungary, which belong to this group. In order to alleviate the Irish, some changes have been made to the original wording, such as the fact that the 15% tax rate will not be raised later or that small businesses will not be covered by the new rules.
CNBC also mentions Hungary as an old opponent of the introduction of a global corporate tax. According to the article, the Hungarians were successfully persuaded to accept the plans, that they were given assurances that the long implementation period would apply.
Participating countries now need to work out the modalities so that the global corporate tax system can start in 2023.