G20 finances ministers meeting in Italy are to discuss a reform of taxation on multinational firms that is meant to stop nations from using ultra-low tax rates to attract businesses. The world's top economies would be the biggest gainers of the OECD-brokered preliminary deal, while tax havens would be the biggest losers. According to the OECD, which led negotiations that produced a draft tax reform agreement among 131 nations, setting a minimum effective tax rate of 15% would generate an extra €150 billion ($175 billion) in revenue per year. Tax havens to loseCountries that set their tax rates low in order to lure businesses, including tax havens that charge little to no tax, stand to lose the most, meanwhile. They will benefit from the measures that redistribute some tax revenues to countries where profits are generated.

Source: Mint July 07, 2021 13:18 UTC