Negotiators from 130 countries have agreed
on a major overhaul of how the world’s biggest
companies are taxed in an effort to deter
international avoidance schemes that have cost
governments billions in revenue.
It’s an attempt to better cope with a world
where globalization and an increasingly digital
economy mean that profits can move easily
from one jurisdiction to another. The agreement
was sealed in talks overseen by the Paris-based
Organization for Economic Cooperation and
Development, though there are still details to
work out and hurdles to clear before it can take
effect in 2023.
The key feature is a global minimum corporate
tax of at least 15%, endorsing the broad outlines
of a proposal from U.S. President Joe Biden.