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Some 136 countries and jurisdictions representing more than 90% of global GDP have agreed a global minimum 15% corporation tax rate.
The two-pillar solution would apply to global firms with at least a 10% profit margin – and would see 25% of any profit above the 10% margin reallocated and then subjected to tax in the countries they operate.
Pillar 1 will be implemented through a multilateral convention (MLC) with this aiming to come into effect in 2023.
Under pillar two the G7 countries also agreed to implement a 15% global minimum corporation tax aiming to become effective from 2023. This will be operated on a country-by-country basis and according to the Treasury will create a more level playing field for UK firms and crack down on tax avoidance.
The Organisation for Economic Co-operation and Development (OECD) said the deal...
