Last week a collection of 130 nations came together to reach a groundbreaking agreement for a global minimum tax rate on corporations, but there are still several countries that flat out refuse to jump on the wagon.
Treasury Secretary Janet Yellen announced Thursday that 130 of the 139 countries in the Organization for Economic Cooperation and Development agreed to a long-sought conceptual framework to overhaul the global tax system, including a minimum rate of at least 15% on multinational corporations, regardless of where they operate.
But nine countries – Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Sri Lanka, St. Vincent, Peru, and the Grenadines – did not sign the tentative framework. skeptical
The group of three European Union countries – Estonia, Hungary and Ireland – resisting the revamp of the corporate tax is perhaps most significant, because a unanimous decision may be required among the 27-member bloc in order for it to adopt the initiative.
“I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15%’ today,” Irish Finance Minister Paschal Donohoe said. “I have expressed Ireland’s reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support.”
The European Commission continues to downplay the member-state dispute, pointing out that negotiations are set to continue for the next few months, with the intent of finalizing a plan by October.