The establishment of a global minimum tax on businesses should generate 220 billion dollars (202 billion euros) in additional tax revenue each year for states around the world, according to the latest OECD estimate published on Wednesday.
This tax windfall represents 9% of global revenue from corporation tax, says the Organization for Economic Co-operation and Development (OECD) in a press release.
This amount is significantly higher than the OECD’s previous estimate of additional tax revenue from the global minimum 15% tax on corporate profits, which was $150 billion.
The upward revision of expected revenues is explained in particular by the increase in the profitability of multinational companies, writes the OECD.
The global minimum tax on corporate profits is the result of an agreement sealed in 2021 by nearly 140 countries under the aegis of the OECD.
At the end of 2022, after several twists and turns, the leaders of the 27 member countries of the European Union approved its transposition into European law.
But the global minimum tax is only one part, called pillar 2, of the OECD agreement.
Pillar 1, which provides for the taxation of companies where they make their profits to put an end to certain tax evasion practices, is aimed in particular at digital giants.
It should result in gains in annual tax revenue of between 13 and 36 billion dollars, an estimate here also significantly higher than the previous ones, underlines the OECD.
But to benefit from this surplus tax revenue linked to the first pillar, the States must first sign an international agreement, which has not yet been finalized.
The new economic impact analysis once again underlines the importance of rapid, effective and widespread implementation of these reforms in order for these considerable revenue gains to materialise, underlined OECD Secretary-General Mathias Cormann, quoted in the press release.