136 countries including US, China, India, and every EU country agree to set a 15% minimum tax rate for corporate profits; the deal still requires G20 approval
The arc also extends the G20's 2019 effort to develop common rules for closing tax loopholes used by global technology companies. The significance is the breadth of alignment behind a shared floor, rather than a new bilateral tax arrangement.
First-order effects
The 136 participating countries have aligned behind a 15% minimum rate for corporate profits, putting the proposed common floor before the G20 for approval.
Multinational companies operating across the participating jurisdictions face a more coordinated policy direction on minimum taxation, although the reported deal is still pending G20 approval.
Second-order effects
The broader country group increases pressure on G20 members to convert the earlier political consensus into an approved framework, after all G20 nations were included in the July agreement.
Jurisdictions that have competed through lower corporate tax rates face less room to differentiate if the shared minimum is carried through into national rules.
Third-order effects
If the agreement advances through G20 approval and implementation, global corporate tax policy shifts from country-by-country rate competition toward coordinated minimum standards.
The deal continues a multilateral effort to limit loopholes used by large global companies, making common tax rules a more central lever of international economic coordination.
The trend: Major economies are moving from G7 and G20 tax coordination toward a wider global minimum-tax framework aimed at reducing cross-border profit-shifting incentives.
Today's agreement represents a once-in-a-generation accomplishment for economic diplomacy. We've turned tireless negotiations into decades of increased prosperity - for both America and the world. My statement on the OECD Inclusive Framework Announcement: https://twitter.com/...
Rather than securing an agreement with @OECD that would provide certainty and immediately eliminate digital services taxes, the Administration has instead used this global forum to advance its short-sighted domestic tax agenda.
A historic moment for global taxation! I welcome excellent news from @OECD on agreement on minimum corporate rate internationally ✅halts ‘race to the bottom’ on global tax ✅fairer tax paid by companies wherever they operate ✅stops harmful competition on tax between countries http…
Important and welcome progress. Still work to be done here in Australia to ensure multinational corporations pay their fair share of tax. #auspol #ausecon International community strikes a ground-breaking tax deal for the digital age - OECD https://www.oecd.org/...
An agreement among 136 countries seeks to set a global minimum tax to deter tax avoidance by big multinationals. Officials see challenges in implementing the accord, particularly in the U.S. https://www.wsj.com/...
Senators @MikeCrapo, @SenatorRisch, & I are extremely concerned the Biden admin may bypass the Senate treaty process on this destructive global tax policy. A bilateral/multilateral tax treaty would require Senate advice, consent, & 2/3 vote of approval. https://www.finance.senate…
136 countries are on board for this phase of the OECD global tax deal. On to more details/negotiations + Congress. From @PaulHannon29 and me: https://www.wsj.com/...
Huge and great news! The OECD concluded an agreement on a 15% global minimum tax. I'm surprised and impressed by how quickly this came together, a big step forward for more efficient and effective tax systems around the world. Now need to pass it here! https://www.oecd.org/...
Yes - this is a huge win. Governance can work for the public good. H/t everyone on Team Biden who led on this. Now let's make it law, for our economy and for our democracy. https://twitter.com/...