OECD announces tax evasion measures for companies

Announcement of tax evasion measures for companies, etc. OECD Nov. 9 5:25

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The OECD = Organization for Economic Co-operation and Development has announced a proposal for measures to prevent tax evasion to transfer profits to countries with low tax rates, in preparation for new tax rules for large IT companies. Our policy is to create a system that allows appropriate taxation after setting a common minimum tax rate for each country.

For multinational corporations such as giant IT companies that operate across borders, the problem is that tax revenues can be avoided by transferring profits to countries with low tax rates called tax havens.

For this reason, the international framework created by 135 countries and regions around the world is proceeding with the formulation of new tax rules, and the OECD has announced the proposed measures.

According to this, we will introduce a common national minimum tax rate used when imposing corporate tax for proper taxation.
If a corporate group has a subsidiary in an overseas country with a lower tax rate, the country with the parent company can tax the minimum tax rate minus the tax rate paid by the subsidiary locally.
In the future, we will consider how to set the minimum tax rate and how to calculate the tax burden of subsidiaries.

The OECD seeks opinions from experts from various countries and discusses it, and hopes to reach an agreement on the framework of the system in January next year.