OECD Brings Together 130+ Countries for Global Minimum Tax Treaty
Tax avoidance by multinational corporations is becoming significantly harder with the two-pillar approach taken to fight "Base Erosion & Profit Shifting (BEPS)". Many larger companies have perfected a system where they are incorporated in one jurisdiction, sell most of their products or services in one or more different jurisdictions, and do R&D and other invisible services in yet other jurisdictions, to move their profits to wherever the taxes are the lowest. For years, the OECD has brought together governments and experts to seek solutions and ensure that more taxes are paid where the actual goods and services are sold to clients and end users.
Pillar One of the new package addresses where large companies have to pay taxes. Pillar Two introduces a global minimum tax to reduce incentives for circumvention. The package is supported by more than 130 countries representing more than 90% of global GDP.
Soundcloud has a good podcast to learn about problems, suggested solutions, and remaining challenges.