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The Global Minimum Corporate Tax: Not High Enough, Not Fair Enough -CP Chandrasekhar

-TheIndiaForum.in

‘While the global minimum tax proposal is a step forward, that step is disappointingly short of what is needed and possible.’

Following years of negotiations, most nations in the world now appear to be willing to align their corporate tax regimes to prevent multinationals from evading taxation in the jurisdictions in which they operate. They have now tentatively agreed on the need for a global minimum corporate tax rate and a system of allocating the global profits of multinational firms to the different national markets in which they operate, where they can then be taxed. After the G-7 and G-20 finance ministers agreed at meetings in London (June 4-5) and Venice (July 9-10) on the principal elements of a compact that can address the issue, 130 of the 139 countries engaged in talks on an “Inclusive Framework on Base Erosion and Profit Shifting” signed onto the proposal.

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