Minimum corporate tax rate

A global push to enact a minimum international tax on big corporations moved closer to reality on Oct. 8 as one of the last holdouts, Hungary, agreed to join a reform that now counts 136 countries.

The OECD-brokered deal, which sets a global tax of 15 percent, is aimed at stopping international corporations from slashing tax bills by registering in nations with low rates.

US President Joe Biden's tax plan has been accepted by 130 countries worldwide including India and China. These nations will implement a global minimum corporate tax rate and duties on multinational giants from 2023, the Organization for Economic Cooperation and Development (OECD) said.

Chairman of the Social Democratic Party Marcel Ciolacu accuses the government of "keeping mum" on the "historic agreement to tax multinationals 15 percent" and demands the Prime Minister to explain the impact of this measure, especially on foreign capital companies in Romania. "Historic agreement to tax multinationals 15 percent! Yet the Citu Government keeps mum!

The G7, which is holding its annual summit this weekend in a Cornish resort in the UK, gave the effort a boost last week when it issued a joint statement on how revamping the global corporate tax structure should proceed. But Hungarian Prime Minister Viktor Orban this week called the idea "absurd" and said he would not support it.

The Group of Seven wealthy democracies agreed on June 5 to support a global minimum corporate tax of at least 15% to deter multinational companies from avoiding taxes by stashing profits in low-rate countries.