OECD Secretary-General, "Optimistic About Global Minimum Corporate Tax Rate Agreement by the End of This Month"

Nine Countries Oppose Minimum Tax Rate of 15%
Key Opponent Ireland More Likely to Participate

Mathias Cormann (right), Secretary-General of the Organisation for Economic Co-operation and Development (OECD), and Tony Blinken (left), U.S. Secretary of State, are holding a joint press conference after the closing of the 60th OECD Ministerial Council Meeting (MCM) on the 6th (local time) in Paris, France. Paris, France ? Photo by AFP Yonhap News

[Asia Economy Reporter Hyunwoo Lee] Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), expressed optimism that an agreement on the global minimum corporate tax rate could be reached within this month. The global minimum corporate tax rate was previously supported by 130 OECD member countries in July, but negotiations for an agreement have continued due to opposition from some countries such as Ireland and Hungary, which attract businesses with low corporate tax rates.

On the 6th (local time), Secretary-General Cormann stated at the closing press conference of the OECD Ministerial Council Meeting (MCM), "The issue of agreeing on the global minimum corporate tax rate will be finalized in time for the G20 summit held in Rome, Italy, on the 30th of this month," expressing an optimistic outlook.

Tony Blinken, U.S. Secretary of State, who attended the ministerial meeting as the U.S. representative, also said, "This is a once-in-a-generation opportunity to help rebuild the economy," and added, "I believe good progress has been made over the past few days, and I want to cross the finish line."

The global minimum corporate tax rate initiative began with the aim of preventing major global IT companies such as Google, Facebook, and Amazon from engaging in tax avoidance by establishing subsidiaries in countries with low corporate tax rates. In July, the OECD formed a consultative body involving 139 countries and decided to set the global minimum corporate tax rate at 15%, with 130 countries expressing their intention to participate.

However, nine countries including Ireland, Hungary, Estonia, Peru, Barbados, Saint Vincent and the Grenadines, Sri Lanka, Nigeria, and Kenya did not agree to the 15% tax rate proposal. These countries, which mainly attract foreign companies by maintaining low corporate tax rates, judged that the global minimum corporate tax rate would be against their national interests.

Nevertheless, recent negotiations with various countries have raised expectations for an agreement as Ireland, a major opposing country, has indicated the possibility of participation. On the same day, Irish Prime Minister Mich?al Martin stated in an interview with the Irish Times, "There has been significant progress in talks with the OECD regarding the setting of a minimum corporate tax rate."

This content was produced with the assistance of AI translation services.