Cairo – Mubasher: Egypt has joined a historic agreement announced by the Organisation for Economic Cooperation and Development (OECD) to address the tax challenges arising from the digitalisation of the economy in a bid to ensure that multinational enterprises (MNEs) will be subject to a minimum of 15% tax rate from 2023.
A total of 136 countries, representing over 90% of the world's gross domestic product (GDP), have joined that agreement that will help reform the international tax system in order to fit in a digitalised world economy, Minister of Finance Mohamed Maait said in a statement on Sunday.
The deal will reallocate above $125 billion of profits from major international firms to countries worldwide, ensuring that these companies pay a fair share of tax wherever they operate.
The new minimum tax rate is expected to generate additional global tax revenues of about $150 billion annually. A multilateral convention is projected to be signed in 2022.
