By Doug Connolly, MNE Tax
The agreement on international tax reform that was endorsed by the majority of the 139 “Inclusive Framework” countries on July 1 has grown one country stronger as Barbados became the latest country to join, according to an August 12 OECD announcement.
The Inclusive Framework’s July 1 statement describes broad agreement on the terms for a global minimum tax of at least 15% and for new profit allocation rules between countries with respect to taxing rights for the largest multinational companies. Remaining details under the agreement are to be worked over the coming months.
A total of 139 countries and jurisdictions have been engaged in the reform talks through the Inclusive Framework. At the time of the statement’s release, 130 of the 139 countries had joined the agreement. Of the nine initial holdouts, two other additional countries joined prior to Barbados: Peru and Saint Vincent and the Grenadines.
Six Inclusive Framework countries continue to hold out, including three EU countries (Estonia, Hungary, and Ireland), as well as Africa’s largest economy (Nigeria), Kenya, and Sri Lanka. Although these countries have not signed onto the agreement, they remain engaged in talks.
Doug Connolly
Doug Connolly is Editor-in-Chief of MNE Tax. He has more than 10 years of experience covering tax legal developments, previously working with both a Big Four firm and a leading legal publisher. He holds a law degree from American University Washington College of Law.
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