International community strikes a ground-breaking tax deal
On 8 October 2021, a landmark deal has been agreed by 136 countries and jurisdictions representing more than 90% of global GDP to implement the Two-Pillar Solution. The Pillars are aimed at solving tax challenges arising from the digitalization of the global economy. It is estimated that a significant amount of the world’s largest Multinational Enterprises (MNEs) will be impacted by both Pillars. The landmark deal will ensure that MNEs will be subject to a minimum 15% tax rate as from 2023. It will also ensure that more than USD 125 billion of profits of around a hundred of the world’s largest (and most profitable) MNEs will be reallocated, ensuring that these firms pay a fair share of tax wherever they operate and generate profits.
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