Global Minimum Tax

The Global Minimum Tax is an international agreement aimed at ensuring that large multinational companies pay a fair level of tax, regardless of where they operate. It sets a minimum tax rate, meaning countries cannot allow companies to pay less than this rate in taxes. This helps prevent "tax havens," where companies exploit low tax jurisdictions to minimize their tax bills. By establishing a common minimum, countries aim to promote fair competition and improve tax revenues globally, which can be used to fund essential services and investments. This initiative involves cooperation among many countries to address tax avoidance.