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Global Minimum Tax to be implemented



The G-20 countries have planned to enforce global minimum tax in order to make

international trade agreements fair and efficient. The Global Minimum tax rate is to be set at

a minimum of 15% rate, which will ensure that taxes are redirected to the countries where the

products are sold rather than going to the country in which the companies are headquartered

in. The Organization for Economic Cooperation and Development (OECD) proposed two

pillar solutions for sharing of profit allocation. Pillar One which is about reallocation of

additional share of profit to the market jurisdictions and Pillar Two consisting of minimum

tax and subject to tax rules. The Global Minimum Tax is in process of the final stage and will

also solve the issues brought in by the digital space.


Sources

[1]https://economictimes.indiatimes.com/news/economy/policy/india-in-last-stage-of-

finalising-details-on-global-minimum-tax/articleshow/86813341.cms

[2] https://www.nytimes.com/2021/10/08/business/oecd-global-minimum-tax.html

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