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What the global minimum tax deal means for India -Jagadish Shettigar and Pooja Misra

-Livemint.com

The finance ministers of G-20 countries are scheduled to meet today in Washington to discuss the global minimum tax of 15% for multinational enterprises. Mint looks at the global minimum tax and its implications.

* What is the global minimum tax?

Last week, the Organization for Economic Co-operation and Development (OECD) finalized a landmark agreement to subject multinational enterprises (MNEs) to a minimum 15% tax from 2023. A total of 136 countries, including India, have agreed to join the historic agreement. This will help reallocate profits of over $125 billion from over 100 large MNEs to help ensure companies pay a fair share of tax in the countries they operate in. In a digitalized and globalized world economy, this deal brings in a fundamental reform in international tax rules.

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