French President Emmanuel Macron on Saturday hailed the “historic” agreement of 136 countries to set a minimum tax rate for multinational corporations as a major breakthrough in financial justice.
The OECD-brokerage agreement, which sets the global tax rate at 15 percent, aims to prevent international companies from reducing tax bills by registering countries with lower rates.
International pressure for a minimum international tax for large corporations came close to reality on Friday, with Hungary, the last to hold, now agreeing to join a reform that counts 136 countries.
Hungary’s announcement came to another major rival, Ireland – whose low tax rates attracted people like Apple and Google – who repented and agreed to join the global effort.
Estonia also joined the reform on Thursday.
The current 136 countries represent 90 percent of global GDP.
Under the deal they will be able to earn about 150 billion euros ($ 175 billion) in additional revenue from 2023.
“For four years, we have been working for fair taxation of multinationals and digital companies,” Macron said Saturday.
“The tax agreement reached at the OECD is historic. Every multinational company must pay at least 15 percent tax. This is an important step towards tax justice,” the French president tweeted.
Some NGOs and economists argue that the tax measure is insufficiently ambitious and that it will create inequalities between rich and developing countries.
According to Oxfam, poor countries receive less than three percent of sub-tax receipts.
(Except for the title, this story was not edited by NDTV staff and published by Syndicate Feed.)