What is Global Minimum Corporate Tax?
The global Minimum Corporate Tax Rate, abbreviated GMCT or GMCTR, is an agreement between national leaders that proposes to reduce tax competition within the country and stay away from corporate tax by setting the minimum corporate tax rate of the corporation. In recent years, countries have been debating important changes to international tax laws that apply to multinational companies. An agreement on an outline of the new tax law was signed today after the Organization for Economic Co-operation and Development (OECD) announced in July the countries involved in the bill. If fully implemented, large U.S. companies will pay less to the U.S. government and more to foreign governments, while companies ’foreign income will face higher taxes. Larger companies will pay slightly lower taxes in the countries where they have customers and in their headquarters, employees, and working countries. In addition, the agreement stipulates that the national minimum tax rate will be 15 percent, whic...