In a breakthrough deal, 130 countries agreed to back (Politico) a 15 percent minimum corporate tax rate and force the world’s largest companies to pay taxes in countries where their goods and services are sold, even in countries where the companies lack a physical presence.
The preliminary agreement, spearheaded by Washington and negotiated at the Organization for Economic Cooperation and Development (OECD), was accepted by large economies (NYT) that were previously wary of such a deal, including China, India, and Russia. Barbados, Ireland, and seven other low-tax jurisdictions objected to the agreement, arguing it would undermine their sovereignty. Exemptions to the deal are still being negotiated, and currently stand to benefit (FT) the shipping industry and tangible assets such as machinery. The deal is expected to be finalized in October, after which the U.S. Congress and other national legislatures will need to approve it.