A new corporate tax that would apply to global profits and would be aimed mostly at multinational tech companies could raise much more money than originally estimated. According to the OECD, almost 140 countries around the world are ready to introduce this tax.
The tax could raise $250 billion
As early as next year, multinationals could start paying a new tax. This would apply to their profits from their activities around the world. The tax could raise about $250 billion, or about nine percent of total corporate taxes paid. This is what the Organisation for Economic Co-operation and Development (OECD) said in its revised estimate.
Minimum threshold at 15 percent
The tax rate would be set at 15 percent and would represent the minimum threshold. Initial estimates of tax revenue were around $150 billion. The OECD explains the increase in estimated tax yield by the increase in profits in recent years. Individual governments agreed on the introduction of the tax in 2021, but since then the actual setting of parameters for the method of taxation of profits of multinational corporations has been resolved.