Global economic development arm overhauls tax rate

A sweeping overhaul of international tax rules. Nearly 140 countries agreed Friday to ensure that big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxes. The OECD, which has been leading the talks, said the deal would cover 90% of the global economy. The Organization for Economic Cooperation and Development said that would allow countries to collect around $150 billion in new revenues annually. The deal comes as tech giants set up operations in countries with low taxation rates. The agreement aims to prevent big companies from shopping around for low tax rates and from booking profits in low-tax countries like Ireland regardless of where their clients are based. The elusive deal was attained only after Ireland, Estonia, and Hungary agreed to sign up. Only four countries – Kenya, Nigeria, Pakistan, and Sri Lanka – abstained from the deal for now. U.S. Treasury Secretary Janet Yellen said the deal was a win for American families and international business, calling it a “once-in-a-generation accomplishment for economic diplomacy.”

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