Global minimum corporate tax and impact on tax treaty shopping. The G7, and later the G20, met in June 2021 to sign a new tax agreement designed to stop multinational and online tech companies from avoiding tax in many of the countries in which they operate by seeking out favourable tax havens elsewhere. The deal was rubber-stamped by some 130 nations, with plans to introduce an international tax on multinational companies, setting, among other measures, a global minimum tax rate of 15%.
Multinationals, and particularly the so-called Silicon Six (Google, Amazon, Facebook,
Apple, Microsoft and Netflix) will face an additional tax in countries where they offer
services, even if they have no physical base there. Their tax ‘optimisation’ strategy has
badly disrupted local business and the job market globally and contributed to the
uberisation of the job market (zero hours contracts). I believe this most-needed
agreement is a direct attack on the tyranny of the gig economy.
Plans to introduce a global minimum corporate tax rate will have repercussions for users of tax treaties, warns León Fernando Del Canto, an expert in international tax and head of Del Canto Chambers.
You can read the full article here: Accountancy Daily
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