G24 welcomes new global corporate tax expects ‘meaningful’ revenues for developing states

Washington, Oct 11 (FN Agency) The Group of 24 (G24) on Monday supported the new global corporate tax, citing possible benefits for the emerging and developing economies (EMDEs). The Organization for Economic Co-operation and Development (OECD) last Friday finalized the international tax deal, which guarantees that multinational enterprises will be subject to a minimum 15% tax. “We welcome the introduction of a global minimum corporate tax to address harmful tax competition and new rules to allocate a portion of taxable profits of multinationals to market countries.

We expect that the multilateral solution under the proposed two-pillar approach will yield meaningful revenues for EMDEs, which is an important step toward a fairer and more stable international corporate tax system,” the G24 said in a statement. The group also suggested the need to redesign the current arbitration systems so that they reflect interests of all parties as well as stronger global cooperation against illegal financial flows. The OECD has been working on implementing a global tax reform consisting of two pillars. Pillar 1 is about reallocation of taxing rights to ensure a fairer distribution of profits, while Pillar 2 involves a global corporate income tax cap to discourage businesses from sending profits to low-tax countries. The G24 group was created in 1971 to coordinate development and monetary policies with the International Monetary Fund, World Bank and other multi-national lenders and regulators.