Please enable JavaScript.

Coggle requires JavaScript to display documents.

GLOBAL MINIMUM TAX RATE, OECD released Pillar Two model rules for,…

- - - - escape taxes - country operation
  - - - shifting profits lower tax jurisdictions
  - - - colla. put end tax avoidance strategies
        
        BEPS
        
        exploit gaps mismatches tax rules artific shift profits low or no-tax locations
      - 130 countries, including India, have joined a new two-pillar plan
        
        MNCs fair share tax count. they operate
    - - set out the mechanism for GloBe rules
        
        provide taxation system ensure large (MNEs) groups pay this minimum level of tax
        
        Rules create a “top-up tax
        
        wherever if effective tax rate is below minimum 15% rate.
  - - - aim global minimum tax rate - least 15%
- - - - countries compete against each other cut taxes attract business
  - - - shore up tax revenues
        
        invest
        
        social development
        
        fighting the pandemic
        
        generate
        
        additional $150 billion global tax revenues
  - - - countr loosing
        
        $483 billion annually
  - - - discourage multinational shifting profits - tax revenues - low tax countries
  - - - skill workforce
      - capacity innovate
      - strength legal and economic institution
- - - - attracting investments low corporate tax
        
        large developed economies considerable advantage
  - - - source FDI= generate demand efficient utilisation of resources and create employment.
  - - - 15% rate
        
        lower than what working class and middle class people high-income countries.
        
        lower than average statutory rate corporations face in those places.
  - - - G7 and EU take home two-thirds cash GMT , world’s poorest countries will recover < 3%, despite being home > third of the world’s population
- - - - india still get additional taxing rights which are beneficial = exact quantum needs to be calculated