Loading ...Trump withdraws from OECD, rejecting 15% global tax which threatens global tax cooperation
US president pulls out of OECD global tax treaty, dismissing it as having ‘no force or effect,’ jeopardizing an initiative that could generate up to $32B in global tax revenue, particularly aiding low-income nations.
The treaty, announced in October 2021, was signed by 140 countries representing over 90% of global GDP, including major economies such as China, the UK, Germany, France, Japan, and Türkiye. It aimed to impose a minimum 15% tax rate on multinational corporations with global revenues exceeding €750 million ($780.5 million), such as Google, Amazon, Microsoft, and Meta (Facebook), starting in 2024.
The OECD estimated that the agreement would generate between $17 billion and $32 billion in additional global tax revenue, with the largest benefits expected for low- and middle-income countries.
The treaty was designed to curtail tax avoidance by multinational companies that establish operations in low-tax jurisdictions like Ireland and Hungary. Although it was initially set to take effect in 2023, delays in global adoption slowed its implementation.