Why the G7 tax deal for developing countries might be just what is needed
September 2, 2021
A global minimum tax rate of 15% was one of the central topics of the June 2021 G7 meeting in Cornwall. It aims to reduce tax competition and profit shifting in all economic sectors. The ultimate goal is to ensure that the global profits of multinational enterprises would be taxed at an effective tax rate. This move would be disadvantageous for some developing countries, while for some others it would be beneficial.
Taxation magazine’s latest piece discusses the potential impact of the proposed G7 minimum tax deal on developing countries.
Below are the key points from the article:
- Global minimum tax rate aims to ensure that the global profits of multinational enterprises would be taxed at an effective tax rate.
- Tax incentives offered by developing countries would become ineffective.
- Not all developing countries would benefit from a global minimum tax rate.
Read the full article here.