Global corporate minimum tax

Global corporate minimum tax: The USA President recently declared that a global corporate minimum tax deal "has no force or effect" in the U.S., effectively pulling America out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries.

• About: A global corporate minimum tax is a proposal to impose a minimum rate of taxation on corporate income in most countries of the world by international agreement.

• Aim: To mitigate tax competition and prevent the evasion of corporate taxes by domiciling themselves in tax havens.

o To institute a consistent global baseline. 

o To ensure that the impact of low tax rates or fiscal policies aimed at reducing tax burdens is significantly reduced.

• The EU, Britain and other countries have adopted the 15% global corporate minimum tax, but the U.S.