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June 25th, 2021

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  June 25th, 2021

ASEAN Economics‌‌Global Tax Rules & MNC Tax Rates Landmark G7 Agreement on Minimum Tax Rate on MNCs Analysts‌ The G7 countries have reached a landmark agreement on corporate tax reform, agreeing to proposals which ensure the largest multinationals pay more tax where they operate, regardless of Chua Hak Bin(65) 6231 5830 the location of their headquarters (“Pillar One”), and a minimum tax rate of 15% for multinationals chuahb@maybank.com (“Pillar Two”). The accord will have to win the support of the G20 nations in Venice in July, before Lee Ju Ye wider global negotiations with 139 countries at the OECD. The accord will help end the “race to the bottom”, in which countries have slashed corporate tax rates and provided exemptions toattract big MNCs. The average statutory rate has fallen from around 40% in 1980 to 24% in 2020. (65) 6231 5844leejuye@maybank.com In the absence of a global deal, there would likely be a proliferation of unilateral tax measures Linda Liu (such as digital ta