G20 approves reform of the global tax system

As a result of the meeting of the G20 participants held in the last two days of October, a reform of the global tax system was adopted, providing for a minimum tax rate on profits of international corporations, whose annual revenue exceeds 750 million euros, in the amount of 15%, starting from 2023. Reports by Break News.

The provisions of this reform were supported by 136 countries and jurisdictions last month. As part of the reform, Governments are given the right to tax the activities of such companies on the territory of their States. This paragraph of the reform also applies to companies that are not located in the country, but carry out their activities on their territory.

According to the Organization for Economic Cooperation and Development, the implementation of this reform will result in the redistribution of the rights to tax the profits of about one hundred of the world's most profitable corporations in the amount of over $125 billion per year.

Due to the introduced minimum corporate tax rate, tax collections in the world will additionally amount to approximately $150 billion annually.