Minimum corporation tax rate

Treasury to make £12.7bn from new global minimum corporation tax

The Treasury expects to make nearly £13bn from the new global minimum corporation tax proposed by the Organisation for Economic Co-operation and Development (OECD). Over the first six years of the tax’s introduction, Treasury estimates suggest it will bring in around £12.7bn. The new tax regime, which will see a 15% minimum tax rate on corporate profits, is part of a global attempt to clamp down on corporate tax evasion. The Treasury said that implementing the rules will protect the UK from “aggressive tax planning by large multinationals” and help “level the playing field for tax competition that has been tipped in favour of no or low tax jurisdictions”. Globally, the tax is expected to raise between $155bn-192bn, increasing the global corporate tax take by up to 8%. Meanwhile, experts have suggested that the regime will see a shift in how jurisdictions compete for international investment.