A global push to enact a minimum international tax on big corporations moved closer to reality on Friday as one of the last holdouts, Hungary, agreed to join a reform that now counts 136 countries.
The OECD-brokered deal, which sets a global tax of 15 percent, is aimed at stopping international corporations from slashing tax bills by registering in nations with low rates.
“Today’s agreement will make our international tax arrangements fairer and work better,” said OECD Secretary-General Mathias Cormann. “This is a major victory for effective and balanced multilateralism.”
Hungary’s announcement came a day after another key opponent, Ireland — whose low tax rate has attracted the likes of Apple and Google — relented and agreed to join the global effort.
With Hungary, 136 countries representing 90 percent of global gross domestic product have now signed up, the Paris-based Organisation for Economic Co-operation and Development said. Estonia also joined the reform on Thursday.
The OECD said Kenya, Nigeria, Sri Lanka and Pakistan are the last holdouts among 140 countries that have negotiated the tax. Pakistan had been on a previous list of signatories.