On 8 October, the OECD Plenary Session finalized the two-pillar agreement that will reform the international tax system. It will impose a minimum tax rate of 15% on the profits of multinational companies from 2023. The key points of the new global tax, designed to meet the needs of the digital age, had already been agreed on 1 July.
Greece is among the 136 countries, out of the 140 members of the OECD, which support the agreement.
The aim is for multinational companies to pay the tax due to them in the countries where they operate. The two-pillar framework updates key elements of the global tax system to meet the challenges of the digital economy and the new 21st century business models that allowed profits to be transferred to low-tax jurisdictions.
The First Pillar provides clear rules for the distribution of tax rights per country on the profits of the 100 largest multinational corporations operating in the global digital economy. Profits to be redistributed are estimated at around $ 125 billion.
The Second Pillar aims to delimit tax competition and protect national tax bases. It imposes a global minimum tax rate of 15% on multinational companies with revenues of over 750 million euros annually. Revenues for national tax authorities are expected to reach 150 billion dollars per year.
The Greek Ministry of Finance welcomed the consensus on the new architecture of the global tax system, noting that unilateral initiatives to tackle modern MNEs tax evasion are not effective.
Greece says that the new system will ensure the tax rights of the country and will strengthen the competitiveness of the Greek tax system.
In 2021, the Greek government has reduced the corporate income tax rate to 22% (from 24%).