The international agreement setting a global corporate tax of at least 15% on multinationals stands to net Belgium up to one billion euros per year, according to the Secretary-General of the Organisation for Economic Cooperation and Development (OECD), Mathias Cormann.
The 38 members of the OECD agreed to the minimum tax on multinationals’ profits in October. Under the agreement, the mega-companies will also be required to pay part of their taxes to the countries where they reap significant profits without maintaining a physical presence there, Belga News Agency reports.
The agreement, which has since been endorsed by 137 countries worldwide, should result in 275 billion dollars per year accruing to the various countries, according to Mr. Cormann, a former Australian Finance Minister and a Belgian national, born in Eupen. He expects it to start taking effect from 2023.
The agreement should also bring in about one billion euros in additional income per year for Belgium, he said, explaining that this was a minimum amount since it was hard to estimate at this time the amount of income the multinationals will need to redistribute.
The reform also means the end of the line for tax havens, according to the OECD head, since countries formerly seen as fiscal paradises have signed on to the agreement, so companies no longer have any interest in shifting their profits there.