A hot topic in international tax law recently is the proposal of the Group of 7 for introducing a global minimum tax rate of 15%.
The G-7 proposal was approved also by G-20 in July 2021 and was officially adopted at the meeting in Rome. OECD has to draw up a detailed plan for the introduction of the new tax rate. It should be noted that оut of a total of 139 OECD member states, 137 have approved the introduction of this tax rate and Bulgaria is one of them.
This global deal is designed to make the digital giants with profits of over 750 million EUR pay a fairer share of tax, especially in the context of the rapidly increasing digitalization of the economy worldwide.
The reason for the introduction of the tax is the need to prevent aggressive tax planning and directing profits to more favourable tax jurisdictions by multinational corporations – a practice common with tech giants such as Apple, Facebook, and Google.
According to preliminary data of OECD, a group of approximately 8 000 companies worldwide would feel the global minimum tax burden the most.
On the 20th of December 2021 OECD released the report for introducing ”Pillar Two” of the plan for establishing a global minimum tax rate.
It is planned that the changes will be implemented the national legislation of each country in 2022. We from Tascheva & Partner will continue to follow the subject and keep you informed in due time on the latest developments concerning the introduction of the global minimum tax rate.