More than 145 countries agree on update to global minimum tax deal

PARIS: More than 145 countries agreed on Monday to amend a 2021 global minimum corporate tax agreement, addressing Washington’s concerns the rules could penalise US multinational companies.

The Organisation for Economic Cooperation and Development said the fresh package preserves the 15 percent global minimum tax framework designed to ensure large multinationals pay a baseline tax wherever they operate.

The update includes simplifications and carve-outs to align US minimum tax laws with global standards, accommodating earlier objections raised by the Trump administration.

OECD head Mathias Cormann said in a statement the arrangement “enhances tax certainty, reduces complexity, and protects tax bases.” As of October, more than 65 countries had begun implementing the 2021 global tax deal, which requires nations to apply a 15 percent corporate tax or impose a top-up levy on multinationals booking profits in jurisdictions with lower tax rates.

The revised agreement solidifies global backing after G7 countries, including the US, brokered a deal in June exempting some US companies from parts of the original framework. A broader agreement, reached on Monday after Washington pressured holdouts to back the updated arrangement, helps stabilise the global deal.