OECD Global Agreement on Minimum Corporate Tax

The Organization for Economic Cooperation and Development (OECD) published the global minimum corporate tax agreement approved by 140 countries.

The agreement, published on the OECD website, aims to ensure that global companies, including internet companies such as Google, Amazon, Microsoft and Facebook, are subject to a tax rate of at least 15 percent from 2024.

The OECD announced on October 8, 2021 that 140 countries, including China, Germany, France, England, Japan and Turkey, representing more than 90 percent of the world’s gross domestic product (GDP), had accepted the agreement on reform international tax.

According to the Paris-based OECD, the agreement will provide additional global tax revenues of between $17 billion and $32 billion, with low- and middle-income countries benefiting the most.

The OECD announced in July 2022 that new rules on the global minimum corporate tax will come into force in 2024. (AA)