More Than 130 Countries State Support For Global Minimum Tax

As CNBC reported, on July 1, 130 countries, including China and India, issued a statement supporting an international tax framework that includes a global minimum corporate tax.

The news is a victory for the Biden administration. Indeed, President Joe Biden said, “Multinational corporations will no longer be able to pit countries against one another in a bid to push tax rates down and protect their profits at the expense of public revenue … They will no longer be able to avoid paying their fair share by hiding profits generated in the United States, or any other country, in lower-tax jurisdictions. This will level the playing field and make America more competitive.”

The statement from 130 countries participating in the negotiations at the Organization for Economic Cooperation and the Development (OECD) and the Group of 20 (G-20) calls for a global minimum tax rate for corporations of at least 15 percent, the rate proposed by the United States. The statement came ahead of the meeting of the G-20 finance ministers in Venice, Italy this past week.

At that meeting, finance ministers representing the Group of 20 large economies have approved a plan for taxing multinational companies that includes a global minimum tax rate of 15 percent. Read more here.

The original OECD statement said that a detailed implementation plan would be finalized in October. It could take some time after a plan is finalized for an agreement to be implemented, because countries will need to update their laws and possibly their tax treaties.

The nonpartisan, nonprofit Tax Foundation has more information on the agreement here.