It has been announced by the Organisation for Economic Cooperation and Development (OECD). A small group of member countries do not support the plan.
The aim of the tax plan is to ensure that companies operating in several countries pay taxes in all those countries. As a result, multinationals do not have to pay tax on part of the profits in their home country, but in the countries where the profits were actually made. Companies do not have to have offices in the countries where they operate. In addition, the minimum profit tax for these companies worldwide goes to 15 percent.
It is expected to be more than $100 billion in profits each year. The increase in the global minimum tax rate to 15 percent is expected to generate around $150 billion in additional tax revenues worldwide each year.
Of the 139 countries that were involved in discussing a new tax plan, nine are not or are not yet in favor of it. One of the countries that does not support the plans is Ireland, which, like the Netherlands, is seen by many other European countries as a tax haven. The Irish government wants to stick to the 12.5 percent tax rate for large companies, which the Irish managed to attract many US tech companies like Apple and Facebook.
Other countries that did not support the United States plan were Barbados, Estonia, Hungary, Kenya, Nigeria, Peru, Saint Vincent and the Grenadines and Sri Lanka.