Faculty of Economics, Administrative and Social Sciences - iisbf@gelisim.edu.tr
International Trade And Finance
14 July 2021 Wednesday
Global Tax Reform
The global tax reform, which is planned to be implemented in order to stabilize the international tax system, was supported by 130 countries.
Global tax reform has been agreed upon by 130 countries that make up 90 percent of the world economy. The Organization for Economic Cooperation and Development (OECD), which includes member countries such as the USA, China, Japan, England, Germany, France and Turkey, has announced its assessments on the international tax agreement. In accordance with the agreement, it was agreed that multinational companies should pay at least 15 percent tax to the countries where they carry out their activities and generate profits.
In line with the agreement, it is aimed to increase the tax revenues of 150 billion dollars annually in order to stabilize the international tax system. In this context, it is aimed to expand the scope of tax payment obligations of large multinational companies such as Google, Amazon, Facebook and Apple outside the central countries. Within the framework of the plan, it is expected that international companies will be prevented from turning to countries that are considered tax havens. Considered as the most important tax agreement of the last century and aiming to prevent the race to the bottom on tax rates, the agreement is supported by all G-20 countries. EU member states such as Ireland and Hungary, which apply low corporate taxes, did not agree upon the decisions supported by many countries for the adoption of a fair tax system at the international level.
It is planned that the regulations and implementation details of the global tax agreement will be completed in October 2021. The agreement is planned to be implemented in 2023, with legal certainty regarding tax reforms.
