The international debate over the introduction of a minimum global corporate profit tax is likely to bear fruit this year. According to the head of the Center for Tax Policy at the Organization for Economic Cooperation and Development, states could agree on some form of tax as much as this year.
According to Pascal Saint Amans, director of the OECD‘s Tax Policy Center, a basic global tax agreement could be reached by the end of this year. “There is a new dynamic in this debate that is very likely to lead us to a solution,” Saint Amans said during an online conference organised by Ireland on the issue.
“There is a strong momentum on the part of individual governments, especially in the post-covid era, when individual firms are expected to return to profit- making, the increase in their willingness to tax in countries where the tax burden is low,” Saint Amans added.
For example, US President Joe Biden, who has come up with a proposal to introduce a corporate tax on profits regardless of sectors, has been talking about introducing a global tax for some time. The original plans only envisaged a digital tax, mainly because it is the multinational tech giants that are the easiest to optimize.