Landmark corporation tax deal agreed by 136 nations

Some 136 countries and jurisdictions representing more than 90% of global GDP have agreed a global minimum 15% corporation tax rate.

The two-pillar solution would apply to global firms with at least a 10% profit margin – and would see 25% of any profit above the 10% margin reallocated and then subjected to tax in the countries they operate.

Pillar 1 will be implemented through a multilateral convention (MLC) with this aiming to come into effect in 2023.

Under pillar two the G7 countries also agreed to implement a 15% global minimum corporation tax aiming to become effective from 2023. This will be operated on a country-by-country basis and according to the Treasury will create a more level playing field for UK firms and crack down on tax avoidance.

The Organisation for Economic Co-operation and Development (OECD) said the deal will...