International review for June 2021

In June tax made global headlines as the G7 reached a consensus on proposals to address the challenges of the digitisation of the economy. A global minimum tax rate of at least 15% was agreed: a middle ground less than the 21% rate previously favoured by the Biden Administration. G7 finance ministers also found consensus on the allocation of global taxing rights based on a reallocation of at least 20% of profit exceeding a 10% margin ‘for the largest and most profitable multinational enterprises.’ Meanwhile significant progress was also made in the EU on the public country by country reporting proposal. This could see multinational enterprises required to make their first reports as soon as 2025. In other news Brazil has been renewing its efforts to join the OECD and as part of this is understood to be looking at more fully implementing the arm’s length...