Sharing Daily Discoveries About Personal Finance And Business Topics

G7 Minimum Fifteen Percent Corporate Tax Agreement

There was some pretty big news today which will definitely effect a bunch of businesses with operations around the world. It’s very common for a large company to transfer all their head office and funds to a country different than the one they are mainly doing business in as a way to pay less taxes. But with this new agreement there is going to be a minimum of a 15% global corporate tax which will change a lot of businesses.

I don’t imagine companies immediately closing down locations that were primarily acting as a tax shelter of sort, but any company that was planning do such an action will probably hold off now. This comes during a time where it seems like regulators are really going after companies in the digital space as the old laws simply weren’t designed for how things ended up.

This should theoretically help everyone else as well where companies who normally saved money this way would end up paying the anticipated amount which then gets redistributed in tax spending.

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