At the G20 summit in Rome, leaders of the world’s wealthiest nations endorsed a landmark deal that would impose a minimum tax rate of 15% for multinational corporations starting in 2023.
The deal, brokered by the Organisation for Economic Co-operation and Development (OECD) and spearheaded by U.S. Treasury Secretary Janet Yellen, was signed by 136 countries, including Albania.
It seeks to crack down on tax havens, making it harder for companies to avoid paying taxes by being based in countries with low-tax regimes.
According to the OECD, the deal could raise $150 billion in revenues each year that would be partially redistributed to the companies’ home countries.
The 15% minimum tax rate would apply to corporations with revenue above €750 million.
The deal would also require global companies like Amazon to pay taxes in the countries where they sell goods and services regardless of whether they are physically present there.
The future of the deal is still uncertain, as it needs to be approved domestically by each country, including a divided U.S. Congress, before it is ratified.
