Corporation Tax
The question
To ask the Chancellor of the Exchequer, if the Prime Minster will have discussions with his international colleagues at the next G20 on raising the international corporate tax rate to 21%.
Answered by Dan Tomlinson
The global minimum tax project is the result of an agreement reached by members of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting to reduce profit shifting by large multinationals.
Under the global minimum tax, large MNE groups will be subject to top-up tax if their effective tax rate is lower than 15%. The 15% rate was agreed in 2021, and was the outcome of negotiation and agreement by more than 130 countries. Many of these countries including the UK have now implemented the global minimum tax into their domestic legislation.
The internationally agreed 15% rate is not open for negotiation, but the government believes that it strikes the right balance between curbing harmful tax practices without preventing jurisdictions like the UK from enacting our 25% rate.
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