136 countries agree to impose 15% minimum corporate tax on MNC
PARIS: The Organization for Economic Co-operation and Development (OECD) has announced a major overhaul of the global tax system, with a minimum corporate tax of 205 to 12 per cent for multinational companies. Twelve countries have agreed on a temporary agreement to change the tax structure on multinational companies. Its purpose is to prevent tax evasion by multinational companies from hiding in tax haven countries. In such tax havens, there is little or no tax on income. Under the agreement, a minimum corporate tax of 12 per cent will be imposed on large multinational companies. Under the agreement, a global minimum corporate tax of 204 to 18 per cent a year will apply to companies with annual revenues of more than ૮૭ 50 million (about ૭૫ 50 million). The OECD said the agreement is expected to add about ૫ 150 billion annually to global tax revenue.