The organization now estimates that the minimum rate of 15% will raise more than 200,000 million, compared to the initially estimated 140,000 million
The global agreement reached by nearly 140 countries in 2021 to tax the benefits of large multinationals at a minimum rate of 15% will generate more revenue for States than initially expected.
According to a new analysis of the tax published Wednesday by the Organization for Economic Co-operation and Development (OECD), the introduction of the global minimum for businesses will allow countries to collect $220,000 million a year (about €203,400 million). A figure that is much higher than the initially estimated $ 150,000 million (about 140,000 million euros), mainly thanks to the profit increase experienced after the pandemic by large companies that will be affected.
The new provision not only affects the so-called second pillar of this new global taxation, which refers to this minimum rate, but will also affect pillar one of the reform, which aims to shift tax revenues to the jurisdictions where the goods and services sold are consumed. Concretely, the first analyzes indicated that this change would mean about 125,000 million dollars (115,566 million euros) and it is now estimated that this will happen in 200,000 million dollars (184,900 million euros).
In its report, the major economies think tank highlights that nearly 50% of estimated profits for Pillar One come from large digital companies,
“The international community has made significant progress in implementing these reforms, which are designed to make our international tax regimes fairer and work better in a digitized and globalized global economy,” OECD Secretary General Mathias said on Wednesday. Cormann.
However, the entry into force of this new fiscal framework will not take place until 2024, instead of the same year as originally planned. This new economic impact analysis again underscores the importance of rapid, efficient and widespread implementation of these reforms to ensure that these significant potential revenue gains can be realised.
The goal of the main instigators of this “fiscal revolution”, including US Treasury Secretary and former Federal Reserve (Fed) President Janet Yellen, is to avoid the so-called “fiscal dumping” with which the large multinationals create complex corporate structures to limit the payment of taxes as much as possible and to tax their profits in the countries with the greatest tax advantages.
His first proposal also came at a key time for governments around the world, which were in dire need of improving collection to finance the increase in spending caused by the post-pandemic energy and price crisis.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
