Global minimum tax spurned by 9 countries, complicating new dealA group of 130 nations reached a groundbreaking agreement last week for a global minimum tax rate on corporations, but the tentative deal has been complicated by a handful of countries that refused to endorse the blueprint.
Treasury Secretary Janet Yellen announced Thursday that 130 of the 139 countries in the Organization for Economic Cooperation and Development agreed to a long-sought conceptual framework to overhaul the global tax system, including a minimum rate of at least 15% on multinational corporations, regardless of where they operate.
But nine countries – Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Sri Lanka, St. Vincent, Peru and the Grenadines – did not sign the tentative framework.
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The group of three European Union countries – Estonia, Hungary and Ireland – resisting the revamp of the corporate tax is perhaps most significant, because a unanimous decision may be required among the 27-member bloc in order for it to adopt the initiative.
Ireland, which has a 12.5% corporate tax rate, said it has "reservations" about the proposal, but suggested is open to continuing negotiations and reaching an agreement that it can support.
"I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15%’ today," Irish Finance Minister Paschal Donohoe said. "I have expressed Ireland’s reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support.".....................
https://www.foxbusiness.com/economy/global-minimum-tax-rejected-nine-countries
