World leaders have formally agreed to an overhaul of international tax rules that would impose a new global minimum tax on business profits of 15 percent. This international agreement, signed by 140 countries (US included), also intends to update international tax rules to reflect the realities of the digital era.
For the first time, there would be a minimum corporate tax rate applied around the world (set at 15%) so multinational companies will have less incentive to move their operations to low-tax jurisdictions and tax havens. It would affect multinationals that have been paying few or no taxes in the last decade. With budgets strained after the COVID-19 crisis, digital tax has been a key aim throughout the negotiations for the U.S. Multinationals while this global initiative is coming from the G20 most powerful nation
- Understand the basis and key elements of the worldwide 15% global minimum tax
- Prepare your business for this global initiative taking place in 2023
- Identify the importance of digital business and digital tax in the government negotiations