Global minimum tax ever closer
Poland and 135 countries last Friday issued a statement about continuing to work together on tightening the tax system.
– Specifically, it is about plans to create regulations that would allow the largest companies, including digital giants, to be taxed with a so-called minimum tax (substance-based carve-out). Negotiations in this area started in July. All this is to tighten the tax system. According to OECD studies, global losses connected with avoiding corporate income tax amount to from 4% to 10% of global income from this tax, i.e. from USD 100bn to USD 240bn annually – points out Łukasz Kupryjańczyk, tax advisor, partner at Thedy & Partners.
Currently, the substance-based carve-out proposal is to exclude at least 8% of assets and 10% of payroll value over a transitional period of 10 years.