HomeWinBuzzer NewsOECD Agreement Means Tech Giants Will Pay 15% Tax in 136 Countries

OECD Agreement Means Tech Giants Will Pay 15% Tax in 136 Countries

136 countries have agreed with the OECD to levy tech giants with a tax of at least 15% if they have revenue over €750 million.

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The Organisation for Economic Co-operation and Development (OECD) says it has come to a tax agreement with nations around the world to levy on major tech companies. According to the announcement, those companies will pay 15% tax as a minimum rate no matter which country they operate in.

With 136 countries on board, the deal will cover 90% of global GDP when it comes into effect in 2023.

It is clear the deal is a major step forward in preventing tech companies from avoiding tax payments by operating in favorable countries. However, OECD is eager to point out the deal does not eliminate tax competition.

What it does do is ensure countries get tax payments. It is worth noting the agreement only covers companies with revenues of €750 million or more. Over the years, giants like MicrosoftApple, and Google have all fallen foul of regulators for their tax avoidance practices.

New Era

Speaking of the deal, OECD Secretary-General Mathias Cormann, say:

“Today's agreement will make our international tax arrangements fairer and work better. This is a major victory for effective and balanced multilateralism. It is a far-reaching agreement which ensures our international tax system is fit for purpose in a lobalized and lobalized world economy. We must now work swiftly and diligently to ensure the effective implementation of this major reform.”

All countries that are part of the agreement will create their own domestic legislation next year to reflect the new tax. OECD will provide support to ensure nations can roll out their rules and make them effective.

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Last Updated on February 14, 2022 8:19 pm CET

Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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