• By The Financial District

136 Nations OK Minimum Corporate Tax As Ireland Drops Opposition

A group of 136 countries has agreed to a global treaty that would tax large multinationals at a minimum rate of 15% and require companies to pay taxes in the countries where they do business, Hanna Ziady and Mark Thompson reported for CNN.

Photo Insert: The countries that signed on to the international treaty represent more than 90% of global GDP.

Estonia, Hungary, and -- most notably -- Ireland joined the agreement Thursday. It is now supported by all nations in the Organization for Economic Cooperation and Development (OECD) and the G20.

The countries that signed on to the international treaty represent more than 90% of global GDP. Four countries that participated in the talks -- Kenya, Nigeria, Pakistan and Sri Lanka -- have not yet joined the agreement.

The Biden administration breathed new life into the global initiative earlier this year and secured the support of the G7 countries in June, paving the way for a preliminary deal in July.

Ireland, which had declined to join the initial agreement in July, has a corporate tax rate of 12.5% — a major factor in persuading companies such as Facebook, Apple and Google to locate their European headquarters in the country. "Today's agreement will make our international tax arrangements fairer and work better," said OECD Secretary-General Mathias Cormann in a statement.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

"This is a major victory for effective and balanced multilateralism."

Ireland signed up after the preliminary agreement was revised to remove a stipulation that rates should be set at a minimum of at least 15%. "We have secured the removal of 'at least' in the text," Irish Finance Minister Paschal Donohoe said in a statement.

Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

"This will provide the critical certainty for government and industry and will provide the long-term stability and certainty to business in the context of investment decisions."

The new rate would apply to 1,556 multinationals based in Ireland, employing about 400,000 people. More than 160,000 businesses making less than €750 million ($867 million) in annual revenue and employing about 1.8 million people would still be taxed at 12.5%.

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