The significance of the global minimum corporate tax rate
Read time: 5 mins; Word count: 1020 The introduction of a global minimum corporate tax rate is probably the second best thing to happen in 2021 after mass Covid vaccination. Here is the why, what, when and how of the matter: Why is this needed? Although almost all countries have a corporate tax rate, there are plenty of loopholes that large corporations take advantage of, especially by using tax-havens (Tax-havens are countries such as the Cayman Islands, Mauritius, Luxembourg etc. where they charge a very low or nil tax rate, therefore Companies set up their headquarters in these countries despite making their money elsewhere, thereby paying very low tax in that tax haven and robbing the countries that made this money for them of their tax revenue) . Sounds very unfair? Isn't it? But it is just aggressive tax planning and therefore perfectly legal to do so. Because no one can stop a company from setting up their base in another country but also taxing them in both countries would