Paris: US Presidential Tax Plan Joe Biden has been received by 130 countries around the world including India and China.
These nations will apply tariffs and tax duties of global minimum company to multinational giants from 2023, organizational words for economic cooperation and development (OECD).
According to a statement, the participants, in OECD talk online work, promised to introduce a minimum minimum minimum tax rate of 15 percent for companies operating globally to prevent them from turning to low tax areas to secure expanded profits.
This policy will close several of the most famous tax gaps in the world and will produce an estimated USD 150 billion in additional tax revenues every year.
To implement rules, multilateral agreements will be withdrawn in 2022, with each government to prepare the necessary revisions and domestic regulations, Kyodo News reported.
“Multinational companies will no longer be able to pay for countries with each other in an effort to drive the tax rate to fall and protect their profits at the expense of public income …
they will no longer be able to avoid paying fair shares by hiding their profits by hiding profits .
Produced in the United States, or any other country, in lower tax jurisdiction.
This will raise the playing field level and make America more competitive, “Washington Post reported quoting President Biden.
New tax patterns will apply to multinational giants with a global annual income of at least 20 billion euros (USD 24 billion) and more than 10 percent profit margins, this agreement also includes the first inventory to give birth to the US internet giant as Google, Facebook, and Amazon , Also, European companies that have implemented their own digital tax will delete them.
“This is a very, very broad document.
Now we have to work to get details,” said Catherine Schultz, Vice President for tax and fiscal policy on Business Roundtable.
Although it will not be necessary for each country to implement a 15 percent corporate tax rate, if a country maintains a lower level, the US will be able to impose compensation retribution to the company headquartered to achieve the same goal.
Officials aim to reach the last agreement at the end of October when the G20 leaders planned to meet in Rome.
Implementation of this policy will begin in 2023.