A total of 138 countries, including Colombia, have signed a new international agreement within the framework of the Organization for Economic Cooperation and Development (Oecd), which establishes a new tax on the income of multinationals.
The objective of this agreement is to guarantee that, regardless of the country in which large companies operate, they must pay a minimum rate of tax, which will help make earnings fairer for all countries and jurisdictions.
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The decision, which was taken during the fifteenth meeting of the Inclusive Framework, comes after 20 months of intense technical negotiations by the delegates to continue the work to implement two pillars: reallocation of tax rights and global anti-base erosion mechanism.
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What it seeks is to distribute tax rights among countries in which multinationals have a presence.
EFE – Teleperformance – Mercado Libre
The first seeks distribute the tax rights of companies in the different countries where they have a presence. The second, explains the OECD, seeks to put a floor on competition on corporate income tax, through the introduction of a global minimum tax rate.
This global minimum rate, according to the entity’s estimates, could reach 15 percent and could generate around 150,000 million dollars. in additional global tax revenues annually, which would greatly benefit the economies party to the agreement.
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“The two-pillar solution underpins stability for the international tax system, making it fairer and better functioning in an increasingly digitized and globalized world economy,” said OECD Secretary General Mathias Cormann.
The countries also agreed, in a significant development since October 2021, refrain from taxing digital services on any business before December 31, 2024.
Mathias Cormann, Secretary General of the OECD,
The progress made at the fifteenth meeting
In the outcome statement, a text of a Multilateral Convention (MLC) developed by the Inclusive Framework was refined, which allows jurisdictions to reallocate and exercise domestic tax law on a portion of residual earnings of the multinationals.
A framework for the simplified and streamlined application of the arm’s length principle for marketing and distribution activities is also proposed. This in order to protect companies.
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In addition, the STTR was discussed along with its implementation framework, which will allow developing countries to update bilateral tax treaties.
“We have all been working hard on the technical details and implementation fixes that are necessary to make the Two-Pillar Solution a reality. The agreement reached yesterday shows that despite the challenges and compromises along the way, multilateral dialogue works,” Cormann said.
What comes for the process
With all this agreement process, the newly released statement of results will be delivered to the G20 Finance Ministers and Central Bank Governors at their meeting in the Indian city of Gandhinagar on July 17-18.
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Similarly, the technical work will continue to ensure that “andThe MLC enters into force during 2025, allowing the national, legislative and administrative consultation processes applicable in each jurisdiction”, indicates the organization.
And finally, hea OECD will also prepare a comprehensive action plan will support rapid and coordinated implementation, with additional support and technical assistance to enhance the implementation capacity of developing countries.
JUAN DAVID CANO LOPERA
ECONOMY WRITING
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