The introduction of a global minimum income tax is more realistic, experts say

This proposal was also tentatively supported by the finance ministers of the 20 largest economies (G20). The statement will address some key issues that could help address imbalances in the global economy.

The new rules will also apply to Slovak companies

For example, the introduction of a global minimum corporate tax. This follows from the analysis of the consulting company KPMG.

The new rules will also apply to Slovak companies that have business activities in countries where the current tax burden is below 15 percent.

They will also apply to Slovak companies that do business with companies from these countries, which will have to pay a higher income tax in the future and will reflect the increased tax rate in the prices of their products and services.

As many as 130 of the 139 OECD members approved a statement setting out the key terms of an agreement on a two-pillar approach to global taxation.

The final confirmation of the comprehensive agreement is expected at the meeting of finance ministers and central bank governors of the G20 countries in October this year. According to KPMG, it is already almost certain that they will support the proposal.

They still want to resolve the last issues needed for an agreement by October. The changes will then take effect in 2023.

"Thanks to this agreement, the distribution of investments in the world could be fairer. Countries would thus have to compete and attract investors with other, more important aspects. The level of tax rates in individual countries would go to the background, "said Zuzana Blažejová, Executive Director of KPMG's Tax and Legal Services Department in Slovakia.

Countries with low taxes do not agree with the proposal

According to KPMG, countries that are attracting investors to low taxes today do not agree with the proposal. These include Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Peru, Saint Vincent and the Grenadines and Sri Lanka.

Leaders have agreed on at least a 15 percent global minimum tax.

"This statement is in line with what the G7 communicated with the US Treasury Department's May 2021 press release, which previously considered a 21 percent minimum tax rate," Blažej said. minimum rate of tax, according to her, indicates that further negotiations on its final amount will be needed.