A global minimum tax on firms is finally taking shape

By Mark Johnson

More than 130 countries struck a historic deal in 2021 that sought to change the way big companies are taxed. This agreement promised to alter how countries divvy up the right to tax multinational companies’ profits. It also decreed that no big firm should pay tax at a rate lower than 15%, no matter where it books its profits (an idea known as the “global minimum tax”). But the fanfare underplayed quite how much of the nitty-gritty was still to be worked out. In 2024, however, some elements of this big deal will at last start to have an impact.