Global Minimum Corporate Tax Proposal
Signaling a drastic shift in global tax policy, the G20 Finance ministers, in July of 2021, backed the new global minimum corporate tax proposal in an effort to ensure that corporations, primarily tech-based corporations pay their fair share. UK’s Chancellor, Rishi Sunak hailed the effort as ‘historic’ and that it is a global tax framework fit for the 21st century. While the specifics of the framework are still to be worked upon, a broad agreement on what it must do has the approval of around 130 countries. In essence, it seeks the re-allocation of additional share of profit to the market jurisdictions and a minimum tax, currently unspecified but the Biden administration has pegged the number at 15%.