Significant progress has been made in implementing the global minimum tax to establish a global floor for effective tax rates on large multinational enterprises, according to the OECD’s annual report on tax policy reforms, published on Monday 30 September.
While in previous years there was a trend for countries to introduce temporary and permanent tax relief to support individuals and businesses in the face of global macroeconomic shocks, 2023 saw a relative decrease in rate cuts and measures to narrow the tax base. Jurisdictions have favoured rate increases and initiatives to broaden the tax base for most types of tax. By April 2024, 60 jurisdictions had publicly announced that they were taking steps to introduce corporate income tax or implement the minimum tax, with 36 were taking steps to implement the global minimum tax from 2024 and some planning to implement legislation to take effect from 2025.
The OECD also notes that climate considerations are increasingly influencing the design and use of tax incentives. More and more jurisdictions are implementing generous base narrowing measures to promote clean investments and facilitate the transition to less carbon-intensive capital.
Read the report: https://aeur.eu/f/dng (Original version in French by Anne Damiani)