The largest revision of international tax rules in a generation will come into effect in 2024, the Organization for Economic Co-operation and Development (OECD) said in a draft update for G20 finance ministers on Monday.
The restructuring, spearheaded by the OECD and adopted by nearly 140 countries last year, aims to better account for the emergence of large digital companies like Apple and Amazon, which can pocket profits in taxable countries.
The first leg of the two-pronged reform aims to redistribute 25% of the profits of the world’s largest multinational companies for taxation in the countries where their customers are located, regardless of the physical location of the companies. The second pillar aims to set a minimum global corporate tax rate of 15%.
Although this always seemed quite ambitious given the difficulty of agreeing on the complex changes to tax laws in many countries, both pillars would initially be implemented next year.
“We will continue to work as soon as possible to get this job done, but we will also take the time it takes to get the rules right,” OECD Secretary General Mathias Cormann said in a statement. Said.
“These rules will shape our international tax regulations for decades to come,” he said.
source: Noticias
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