Settling on a rate of 15% would likely clear the way for the Irish government to sign up. As the low-tax European home for a number of the world's largest multinationals, Ireland is seen as the key holdout in the negotiations. The agreement does not need to be unanimous, but countries could apply a top-up tax to the 15% minimum on profits booked in the countries that do not back it. French Finance Minister Bruno Le Maire, who has pushed for a higher rate than 15%, said on Tuesday that a compromise was possible on 15%. The minimum rate is supposed to discourage multinationals from booking profits in low-tax countries like Ireland, which has a corporate tax rate of 12.5%, regardless of where their end customers are.

Source: bd News24 October 05, 2021 14:03 UTC