2. Level Playing Field: A global minimum tax would level the playing field for businesses of all sizes and countries. This would reduce the incentive for companies to move profits to low-tax countries, and would also reduce incentives for countries to engage in a “race to the bottom” to attract multinational companies.

3. A global minimum tax is expected to reduce (at least in theory) amount of tax avoidance and evasion, as well as the perception of unfairness that arises when large multinational corporations are able to significantly reduce their tax bills.

4. Reduced Double Taxation: A global minimum tax could help to reduce double taxation of corporate profits. Currently, multinational companies may be subject to taxes in multiple countries, resulting in double taxation of the same income. A global minimum tax could help to avoid this problem.

To find out more about the interaction between global minimum tax on transfer pricing join our webinar on 23 March 2022