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World leaders reach historic deal on global minimum corporate tax rate

The Organisation for Economic Cooperation and Development (OECD) on Friday announced a major breakthrough on corporate tax rates, after years of disagreement.

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World leaders reach historic deal on global minimum corporate tax rate
GNN Media: Representational Photo

The group of developed nations agreed to a global minimum corporate tax rate of 15%. This marks a huge shift for smaller economies, such as the Republic of Ireland, which have attracted international firms — to a large extent — via a lower tax rate.

“The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits,” the OECD said in a statement on Friday.

The breakthrough comes after some changes were made to the original text, notably that the rate of 15% will not be increased at a later date, and that small businesses will not be hit with the new rates.

This helped Ireland — a long-time opponent of raising corporate tax rates — to get on board with the plan.

Hungary, another long-term skeptic about a global tax deal, also changed its mind after receiving reassurances that there will be a lengthy implementation period.

Countries now have to work out some outstanding details so the new deal is ready to kick in during 2023.

What is in the agreement?

The deal marks a shift in tax policy because it not only imposes a minimum corporate tax rate, but it also forces companies to pay taxes where they operate — not just where they have their headquarters.

The exact formula for working out how much companies will owe across the various jurisdictions is one detail that still needs to be finalized.

The announcement from international leaders also came about partly because of the coronavirus pandemic, which renewed a need for fairer taxation, given that governments are scrambling for new sources of funding.

When elected in 2020, President Joe Biden made it clear he wanted to tax the rich more, attempting to address inequality in the US.

SOURCE: CNBC
 

Faisal Ali Ghumman

Faisal Ali Ghumman is a senior editor at GNN, known for writing top quality content which garner very high readerships and has been covering every field of journalism, including politics, media, sports and scholarly articles. Faisal Ali Ghumman is nothing less than a Veteran Editor and has been writing for GNN for the past 4 months.

Pakistan

Pakistan’s COVID-19 positivity ratio rises again 

According to National Command and Operations Center (NCOC), around 1,021 cases of coronavirus were reported while 21 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,173.

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Pakistan’s COVID-19 positivity ratio rises again 

Islamabad: Pakistan's coronavirus positivity ratio surged to 2.36% with 1,021 new cases. 

According to National Command and Operations Center (NCOC), around 1,021 cases of coronavirus were reported while 21 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,173.

Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves.

The total number of cases has reached 1,260,669.

As many as 1,191,425 patients have recovered from the disease with 2,257 critical cases.

Punjab

The number of patients swelled to 436,720 in the province with 12,800 causalities.

Sindh

The number of infections has surged to 463,703 in the province, while the death toll has reached 7,505.

Khyber Pakhtunkhwa

The confirmed cases have surged to 176,194 in the province with 5,657 casualties.

Balochistan

There are 33,092 confirmed cases while 350 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,360 coronavirus cases in the AJK while the death toll has reached 740. On the other hand, there are 10,359 cases in GB with 186 coronavirus deaths.

Islamabad

There are 106,241 cases in the capital city while 935 people have lost their lives.   

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Pakistan

COVID-19: Pakistan sees significant decline in deaths, logs 663 new cases in 24 hours

According to National Command and Operations Center (NCOC), around 663 cases of coronavirus were reported while 11 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,280.

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COVID-19: Pakistan sees significant decline in deaths, logs 663 new cases in 24 hours

Islamabad: Amid a steady decline in Covid-19 infections, Pakistan's coronavirus positivity ratio further fell to 1.66% with 663 new cases.

According to National Command and Operations Center (NCOC), around 663 cases of coronavirus were reported while 11 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,280.

Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves.

The total number of cases has reached 1,265,047.

As many as 1,210,897 patients have recovered from the disease with 2,280 critical cases.

Punjab

The number of patients swelled to 437,974 in the province with 12,849 causalities.

Sindh

The number of infections has surged to 465,819 in the province, while the death toll has reached 7,530.

Khyber Pakhtunkhwa

The confirmed cases have surged to 176,886 in the province with 5,686 casualties.

Balochistan

There are 33,128 confirmed cases while 352 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,402 coronavirus cases in the AJK while the death toll has reached 740. On the other hand, there are 10,369 cases in GB with 186 coronavirus deaths.

Islamabad

There are 106,469 cases in the capital city while 937 people have lost their lives.  

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Pakistan

COVID-19: Pakistan reports 1,004 cases, 28 deaths

According to National Command and Operations Center (NCOC), around 1,004 cases of coronavirus were reported while 28 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,134.

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COVID-19: Pakistan reports 1,004 cases, 28 deaths

Islamabad: Amid a steady decline in Covid-19 infections, Pakistan's coronavirus positivity ratio further fell to 2.31% with 1,004 new cases.

According to National Command and Operations Center (NCOC), around 1,004 cases of coronavirus were reported while 28 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,134.

Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves.

The total number of cases has reached 1,258,959.

As many as 1,188,562 patients have recovered from the disease with 2,473 critical cases.

Punjab

The number of patients swelled to 436,197 in the province with 12,785 causalities.

Sindh

The number of infections has surged to 462,859 in the province, while the death toll has reached 7,497.

Khyber Pakhtunkhwa

The confirmed cases have surged to 175,974 in the province with 5,645 casualties.

Balochistan

There are 33,076 confirmed cases while 350 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,350 coronavirus cases in the AJK while the death toll has reached 739. On the other hand, there are 10,350 cases in GB with 186 coronavirus deaths.

Islamabad

There are 106,153 cases in the capital city while 932 people have lost their lives. 

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