Big multinational companies are now subject to a global minimum tax for the first time, as landmark cross-border tax reforms went live on Monday, seeking to raise up to $220 billion (€200 billion) in extra annual revenue. Almost three years after 140 countries, including Ireland, struck a deal to close glaring loopholes in the international system, some big economies have started to apply an effective tax rate of at least 15 per cent on corporate profits.
Under a series of interlocking rules, if profit by a multinational is taxed below this rate in one country, other countries will be able to charge a top-up levy. The Organisation for Economic Co-operation and Development (OECD), which drove the reforms, estimates it will increase annual tax revenue by as much as 9 per cent, or $220 billion (€200 billion) worldwid