Global minimum corporate tax rate has been reached: OECD

U.S. Secretary of State Antony Blinken speaks during a press briefing with Mathias Cormann, Secretary-General of the Organization for Economic Cooperation and Development, at the OECD’s Ministerial Council Meeting, in Paris, France October 6, 2021. Patrick Semansky/Pool via REUTERS

PARIS (Reuters) – A global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has been agreed by 136 nations, the Organisation for Economic Cooperation and Development said on Friday.

The OECD said four countries – Kenya, Nigeria, Pakistan and Sri Lanka – had not joined the agreement.

“Today’s agreement will make our international tax arrangements fairer and work better,” OECD Secretary-General Mathias Cormann said in a statement. “This is a major victory for effective and balanced multilateralism.”

The OECD said that the minimum rate would see countries collect around $150 billion in new revenues annually while taxing rights on more than $125 billion of profit would be shifted to countries where big multinationals earn their income.

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