The Organisation for Economic Co-operation and Development (OECD) announced on Friday that a 15% minimum global corporate tax rate has been agreed on by 136 countries.
The agreement, which is expected to generate more than $125 billion of profits from approximately 100 of the world's largest enterprises, will come into effect in 2023. It will apply to companies with annual revenue above $860 million.
"This is a major victory for effective and balanced multilateralism. It is a far-reaching agreement which ensures our international tax system is fit for purpose in a digitalised and globalised world economy. We must now work swiftly and diligently to ensure the effective implementation of this major reform," OECD Secretary-General Mathias Cormann said.