EN United States Institutional

The G7 Deal on a Global Corporate Tax: Revolution or PR Stunt?

14 June 2021 - 3 min read

Large global companies may see their average tax bill increase 9%—a hit to profits, but not an unsurmountable one.

The Biden administration’s proposal of a 15% global minimum corporate tax rate meets age-old efforts by the Organisation for Economic Co-operation and Development (OECD) to coordinate global taxation and avoid tax-shifting opportunities for large corporates. Multinationals are estimated to shift around 12% of profits to tax havens, and the proposal would add 14% to corporate tax revenue every year in the U.S. and up to 30% in Europe, which would help governments finance public goods.

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