The 15% floor agreed to is, however, well below a corporate tax rate which averages around 23.5% in industrialised countries. "Facebook has long called for reform of the global tax rules, and we recognise this could mean paying more tax, and in different places." Analysts at Morgan Stanley said that tech hardware, some media services, and healthcare appeared to be the most exposed to a 15% minimum tax rate. 'INCREASED PROSPERITY'Central to the agreement is a minimum corporate tax rate of 15% and allowing governments to tax a greater share of foreign multinationals' profits. Companies with real assets and payrolls in a country can ensure some of their income avoids the new minimum tax rate.

Source: Otago Daily Times October 08, 2021 21:56 UTC