According to CNBC, the agreement stipulates a global minimum corporate tax rate of 15 percent, though small businesses apparently won’t be “hit with the new rates.”
“The landmark deal, agreed by 136 countries and jurisdictions representing more than 90 percent of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits,” OECD said in a statement.
More than 130 nations have agreed to a 15% minimum global tax rate after years of negotiations.
The agreement will serve to crack down on tax havens and will "reallocate more than $125 billion of profits" from many of the world's biggest companies. https://t.co/G09DbJHz4B
Aside from establishing a minimum corporate rate, the agreement also forces companies to pay taxes where they operate, instead of only when they are headquartered, the media outlet notes.
U.S. Secretary of the Treasury Janet Yellen lauded the agreement as “a once-in-a-generation accomplishment for economic diplomacy.”
“International tax policymaking is a complex issue, but the arcane language of today’s agreement belies how simple and sweeping the stakes are: When this deal is enacted, Americans will find the global economy a much easier place to land a job, earn a living, or scale a business,” a statement released by Yellen said.