June 10, 2021

Anna Murray 

The Group of Seven (G-7) agrees to support at least 15% of the minimum global corporate tax rate. This issue will be further conferred on the Group of Twenty (G-20) meeting next month.

Many international companies tend to declare income in low-tax jurisdictions to lower taxation. However, governments find it hard to collect their deserved taxation. On the other hand, like British Virgin Islands, Cayman Islands, etc. the known offshore “tax havens” get benefits from international companies. The advantage includes job opportunities like legal and accounting services, and fees for subsidiary founding. 

Daniel Bunn from Tax Foundation indicates the minimum global corporate tax rate may lead to a little bit side-effect on economy. Meanwhile, tax havens may not disappear completely.

Photo:webshot.