Global company tax shake-up to unleash $360b revenue boost

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The OECD says a huge revenue boost will come from the 135-country deal to set a global minimum company tax rate and reform how big multinationals are taxed.

| A worldwide shake-up of company tax involving more than 135 countries could reap a global revenue bonanza of up to US$256 billion a year, an official study shows.

They also agreed that multinational companies with revenue exceeding €20 billion , such as big tech and pharmaceutical firms, should pay tax in the jurisdictions where they actually earn the money.The OECD said the biggest revenue boost would come from the minimum company tax rate , which would deliver a $US220 billion boost to the 135-plus countries’ collective coffers.

Singapore, Switzerland and Hong Kong are also on the move. Australia has opened a public consultation on the proposal, as has New Zealand. The OECD said a scenario in which countries go it alone could sap global GDP by up to 1 per cent a year, mostly through tax and trade disputes.

 

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