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OECD calls for global minimum corporate tax rate

By Caoimhe Toman

Date: Friday 08 Nov 2019

OECD calls for global minimum corporate tax rate

(Sharecast News) - The OECD has proposed that technology giants and other large multinationals face a global minimum level of corporate taxation, even in the case of having legally shielded their profits in tax havens.
The Paris-based organisation called for the introduction of a safety net on Friday, to enable home countries to ensure their multinationals could not escape taxation

The proposals include the second part of a review of global tax policy by the intergovernmental body, which oversees global co-ordination of taxes.

Last month, it proposed that governments should tear up a century of tax history, by allowing countries to tax operations in their jurisdiction even if they did not have a physical presence there.

The two proposals together aim to eliminate the huge advantages some companies enjoy by moving profits around the world, to minimise the taxes they would otherwise be paying.

Together, they are intended to deter countries from lowering tax rates in an effort to attract those businesses.

"A minimum tax rate on all income reduces the incentive for taxpayers to engage in profit-shifting and establishes a floor for tax competition among jurisdictions," the OECD said in a statement.

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