What is the Global Minimum Tax Deal?
Oct 14, 07:10

On October 8, a group of 136 countries, which generate 90 percent of global GDP, signed an agreement to tax large digital players. It was a proposal put forward by the US to discourage MNCs from moving tax revenues to low-tax countries, regardless of where their sales were made. The agreement now reallocates an additional share of profit to the market jurisdictions where the users are and sets a global minimum corporate tax of 15 percent. The MNCs' tax-reducing strategy is widely known as Base Erosion and Profit Shifting (BEPS), and the OECD and G20 countries agreed on an action plan to tackle BEPS in 2013. The global tax was one of their goals.

global tax deal