Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries, according to The Japan Times. What other talks have taken place The G7 accord feeds into a much broader, existing effort. Such a deal aims to end what U.S. Treasury Secretary Janet Yellen has called a 30-year race to the bottom on corporate tax rates as countries compete to lure multinationals. ; Why a global minimum tax Major economies are aiming to discourage multinationals from shifting profits and tax revenues to low-tax countries regardless of where their sales are made. The Organisation for Economic Co-operation and Development has been coordinating tax negotiations among 140 countries for years on rules for taxing cross-border digital services and curbing tax base erosion, including a global corporate minimum tax. If a broad consensus is reached, it will be extremely hard for any low-tax country to try and block an agreement. The OECD and Group of 20 countries aim to reach consensus on both by midyear, but the talks on a global corporate minimum are technically simpler and less contentious. (news.financializer.com).
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Tagged under low-tax countries, drug patents topics.