Categories: Market Overview

The highest and lowest corporate tax rates around the world

Finance ministers from the Group of Seven (G-7) advanced nations agreed on Saturday to back a minimum global corporate tax rate of at least 15%. U.S. Treasury Secretary Janet Yellen said such a global minimum rate would end “the race-to-the-bottom in corporate taxation” and “ensure fairness for the middle class and working people in the U.S. and around the world.”

Governments in major economies have for years faced the challenge of taxing large companies, such as tech giants Facebook and Google, that operate across many jurisdictions. A common practice among many multinational companies is to declare income — such as those from intangible sources like software and patents — in low-tax jurisdictions regardless of where the sales are made. That allows the companies to avoid paying higher taxes in their home countries.

The G-7 agreement feeds into a broader global effort to update tax rules around the world and will be discussed further at a Group of Twenty (G-20) meeting next month. The Organisation for Economic Co-operation and Development or OECD, an intergovernmental group, has been facilitating negotiations on global taxation over the last few years. It expected a global corporate minimum tax rate would make up the bulk of the $50 billion to $80 billion in additional taxes that companies will end up paying, reported Reuters.

These charts show the highest and lowest corporate tax rates around the world, CNBC, Jun 7

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

1 day ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

1 day ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

2 days ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

2 days ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

2 days ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

5 days ago

This website uses cookies