2024

The possibility that countries will interpret the highly complex global minimum tax rules differently and adopt inconsistent legislation raises concern amongst businesses. Disagreements between countries’ interpretation of the rules may lead to double-taxation problems for businesses. 

The OECD’s global minimum tax of 15% goes into effect this week in several dozen countries. Although the US and China are not part of the economies employing the global minimum tax, enactment in some of the world’s largest economies will raise vital proceeds for governments and end a “race to the bottom” on corporate tax.  

Enactment of the OECD’s global minimum tax only needs a critical mass of countries to implement it and result in an increase in annual tax revenue of 9%, while still creating favorable international tax competition in the form of tax credits, grants and subsidies.