OECD Offers Final Guidance for Global Minimum Corporate Tax

The Organisation for Economic Cooperation and Development detailed on Thursday the final guidance for governments on how to bring the new global minimum corporate tax into their law books, taking the reform a step closer to roll out next year, Reuters reported. In the deepest overhaul of cross-border tax rules in a generation, nearly 140 countries had agreed in 2021 to apply a minimum tax rate of 15% on multinationals by committing to a top-up tax on profits booked in countries that have lower rates. The reform, which the OECD expects will yield an extra $220 billions in tax income globally, aims to update decades-old rules on cross-border tax for the digital age where tech giants like Apple and Google can book profits in low-tax countries such as Ireland. The OECD's final guidance aims to clarify lingering details so that governments adopt tax codes in a consistent and coordinated manner to limit compliance costs for companies and potential for conflicts. Read more.