G20 leaders endorse the deal on a global minimum corporate tax rate

At the G20 summit at the end of October the leaders called on the Organisation for Economic Co-operation and Development/G20 inclusive framework on base erosion and profit shifting to develop swiftly the model rules and multilateral instruments for the minimum global corporation tax rate with a view to ensure that the new rules will come into effect at global level in 2023.

Rob Mander head of international tax services at RSM International said: ‘The G20’s endorsement of the global minimum rate is just the starting point as the key topic is set to become the effective global tax rate. Perception of equity in the global tax system is crucial. For example if multinational companies have an effective tax rate of 15% to 20% while mid-market companies have an effective rate of 25% or more then the system will still be...