Fiscal
Global Minimum Tax
Definition
The OECD/G20 agreement for a 15% minimum corporate tax rate worldwide — designed to prevent profit shifting to tax havens.
Explanation
Pillar Two of the OECD BEPS framework, agreed by 140+ countries in 2021. Takes effect 2024-2025. Targets multinationals with €750M+ revenue. Reduces the incentive for Ireland, Luxembourg, and Caribbean tax havens to offer ultra-low rates. Expected to generate $150B+ in additional global tax revenue annually.