Establishing a global corporate tax rate

A hugely important day in the history of global political fiscal and social collaboration was marked on 1 July 2021 when 130 countries including the world’s leading economies signed up to a plan that will see multi-national companies pay a minimum global company tax rate of 15% (pillar two).

This new global minimum tax rate aligned with the agreement to shift taxing rights to the country where products are sold or services consumed (pillar one) is just the first of many changes that we expect to be made to our current tax systems in the coming years.

This comes as governments and businesses continue to try and keep pace with a world increasingly reliant on cross-border relationships and enhanced digital capabilities. It is however only the first stage. The development of the necessary legislation guidance and treaties is the...