130 countries agree on minimum global corporate tax rate

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 A global corporate tax rate of at least 15% was agreed upon by 130 countries, the Organisation for Economic Co-operation and Development (OECD) said on Thursday.

But Hungary and Ireland were part of a small group of countries that did not agree on the tax rate on multinationals.

The Irish government expressed its “broad support” for the agreement but noted its “reservation about the proposal for a global minimum effective tax rate of ‘at least 15%’.”

“As a result of this reservation, Ireland is not in a position to join the consensus,” the Irish finance ministry said in a statement.

Mathias Cormann, the OECD Secretary-General, nonetheless hailed a historic package of measures.

“After years of intense work and negotiations, this historic package will ensure that large multinational companies pay their fair share of tax everywhere,” Cormann said.

“This package does not eliminate tax competition, as it should not, but it does set multilaterally agreed limitations on it.”

The countries also agreed on a fairer distribution of “profits and taxing rights” with respect to multinationals including digital giants such as Amazon and Google.

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