A global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has been agreed after Ireland, Estonia and Hungary agreed to sign up to the elusive landmark accord. Out of the 140 countries involved, 136 supported the deal with developing countries Kenya, Nigeria, Pakistan and Sri Lanka abstaining for now. The Paris-based Organisation for Economic Cooperation and Development (OECD), which has been leading the talks, said that the deal would cover 90% of the global economy. The agreement will set a minimum corporate tax rate of 15% and let governments tax a greater share of foreign multinationals' profits. But some developing countries seeking a higher minimum tax rate say their interests have been sidelined to accommodate the interests of richer countries like Ireland, which had refused to sign a deal with a minimum tax rate higher than 15%.

Source: The Hindu October 08, 2021 17:03 UTC