https://www.cnn.com/2021/10/08/business/ireland-global-tax-deal-oecd/index.html [ ] * Markets * Tech * Media * Success * Perspectives * Videos Edition * U.S. * International * Arabic * Espanol * Markets * Tech * Media * Success * Perspectives * Videos [ ] Search Edition * U.S. * International * Arabic * Espanol --------------------------------------------------------------------- * Markets + Premarkets + Dow + After-Hours + Market Movers + Fear & Greed + World Markets + Investing + Markets Now + Before the Bell + Leading Indicator + Global Energy Challenge + Economy + Tracking America's Recovery + Energy + Money * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Business Evolved + Innovative Cities + Unhackable * Media + Reliable Sources * Success + Boss Files + Risk Takers + Fresh Money + Invest Ahead + Work Transformed + Cars + Homes + Wealth Coach * Center Piece * Perspectives * Videos * International + Switzerland + India + Davos + Reliable Sources + Passion to Portfolio + On: Germany * More + Accessibility & CC + About Us + Newsletters --------------------------------------------------------------------- * US * World * Politics * Business * Opinion * Health * Entertainment * Tech * Style * Travel * Sports * Videos * Audio * Coupons * Weather * More --------------------------------------------------------------------- Follow CNN Business * * * 136 countries agree to minimum corporate tax rate after Ireland drops its opposition By Hanna Ziady and Mark Thompson, CNN Business Updated 1:53 PM ET, Fri October 8, 2021 facebook ireland dublin global tax facebook ireland dublin global tax JUST WATCHED Ireland agrees to global corporate tax deal Replay More Videos ... MUST WATCH (16 Videos) Facebook EMEA headquarters on Grand Canal Square in Dublin Docklands. On Thursday, 17 June 2021, in Dublin, Ireland. (Photo by Artur Widak/ NurPhoto/Getty Images) Facebook EMEA headquarters on Grand Canal Square in Dublin Docklands. On Thursday, 17 June 2021, in Dublin, Ireland. (Photo by Artur Widak/ NurPhoto/Getty Images) Ireland agrees to global corporate tax deal inflation longevity during pandemic dana peterson orig_00001330.png inflation longevity during pandemic dana peterson orig_00001330.png Economist: Expect inflation 'as long as the pandemic is raging' chownow mn orig_00021912.png chownow mn orig_00021912.png ChowNow CEO weighs in on the future of food delivery, potential IPO The Capitol is seen at dawn as a consequential week begins in Washington for President Joe Biden and Democratic leaders in Congress who are trying to advance his $3.5 trillion "Build Back Better& quot; and pass legislation to avoid a federal shutdown, Monday, Sept. 27, 2021. (AP Photo/J. Scott Applewhite) The Capitol is seen at dawn as a consequential week begins in Washington for President Joe Biden and Democratic leaders in Congress who are trying to advance his $3.5 trillion "Build Back Better& quot; and pass legislation to avoid a federal shutdown, Monday, Sept. 27, 2021. (AP Photo/J. Scott Applewhite) Here's what debt showdown could mean for markets stephen morton _ galloway inflation _00001307.png stephen morton _ galloway inflation _00001307.png How can investors protect against inflation? Scott Galloway weighs in peter thomas roth makeup tiktok orig_00004201.png peter thomas roth makeup tiktok orig_00004201.png 50 million views later, one TikTok made this eye cream sell out A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021. The global stock rout sparked by investor angst over Chinas real-estate sector and Federal Reserve tapering deepened on Monday, with U.S. stocks falling more than 2% and European equities tumbling the most in more than two months. Photographer: Michael Nagle/Bloomberg via Getty Images A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021. The global stock rout sparked by investor angst over Chinas real-estate sector and Federal Reserve tapering deepened on Monday, with U.S. stocks falling more than 2% and European equities tumbling the most in more than two months. Photographer: Michael Nagle/Bloomberg via Getty Images Why global investors are focused on Evergrande [wAAACH5BAE] [2109151328] Petco CEO explains how 11 million new pets in 2020 boosted the business [wAAACH5BAE] [2109090952] Cathie Wood's Ark Invest cuts exposure to China [wAAACH5BAE] [2109081324] Investing in art? This company sells shares of high-value paintings [wAAACH5BAE] [2109011351] Cameron Diaz explains why she started a 'clean' wine company [wAAACH5BAE] [2108251349] Economist: Consumers are recoiling from higher prices People walk by a Help Wanted sign in the Queens borough of New York City on June 04, 2021 in New York City. People walk by a Help Wanted sign in the Queens borough of New York City on June 04, 2021 in New York City. Economist: 'No recession in sight,' but pullback is coming [wAAACH5BAE] [2108111355] How the Delta variant could actually help the economy market pullback volatility omar aguilar orig_00000209.png market pullback volatility omar aguilar orig_00000209.png Top strategist: Investors should expect a market pullback [wAAACH5BAE] [2108041426] Strategist on meme stocks: 'Look at the long term' London (CNN Business)A group of 136 countries have agreed to a global treaty that would tax large multinationals at a minimum rate of 15% and require companies to pay taxes in the countries where they do business. Estonia, Hungary and -- most notably -- Ireland joined the agreement Thursday. It is now supported by all nations in the Organization for Economic Cooperation and Development and the G20. The countries that signed on to the international treaty represent more than 90% of global GDP. Four countries that participated in the talks -- Kenya, Nigeria, Pakistan and Sri Lanka -- have not yet joined the agreement. The Biden administration breathed new life into the global initiative earlier this year and secured the support of the G7 countries in June, paving the way for a preliminary deal in July. Ireland, which had declined to join the initial agreement in July, has a corporate tax rate of 12.5% -- a major factor in persuading companies such as Facebook (FB), Apple (AAPL) and Google (GOOGL) to locate their European headquarters in the country. "Today's agreement will make our international tax arrangements fairer and work better," said OECD Secretary-General Mathias Cormann in a statement. "This is a major victory for effective and balanced multilateralism." Joe Biden wants to overhaul global tax rules. Ireland stands in the way Joe Biden wants to overhaul global tax rules. Ireland stands in the way Joe Biden wants to overhaul global tax rules. Ireland stands in the way Read More Ireland signed up after the preliminary agreement was revised to remove a stipulation that rates should be set at a minimum of "at least 15%." "We have secured the removal of 'at least' in the text," Irish Finance Minister Paschal Donohoe said in a statement. "This will provide the critical certainty for government and industry and will provide the long-term stability and certainty to business in the context of investment decisions." The new rate would apply to 1,556 multinationals based in Ireland, employing about 400,000 people. More than 160,000 businesses making less than EUR750 million ($867 million) in annual revenue and employing about 1.8 million people would still be taxed at 12.5%. "I am confident that Ireland will remain competitive into the future, and we will remain an attractive location and 'best in class' when multinationals look to investment locations," Donohoe said. Alongside a minimum corporate tax rate, the pact includes provisions to ensure that multinational companies pay tax where they generate sales and profits, and not just where they have a physical presence. That could have major ramifications for tech companies such as Google and Amazon (AMZN), which have amassed vast profits in countries where they pay relatively little tax. Now comes the hard part The OECD expects implementation of the agreement to begin in 2023. But even with Ireland and other previous holdouts now on board, the deal still requires countries to pass domestic legislation. "Like the Paris Agreement on climate, concluding technical talks after firming political support was the easier part, implementing the pact will prove significantly more challenging," analysts at political risk consultancy Eurasia Group wrote in a note this week. The treaty will need to be ratified via a two-thirds majority in the US Senate, which is unlikely given that it allows foreign countries to tax US companies, the Eurasia Group analysts said. An alternative could be "another major tax bill," but the United States is unlikely to consider that until 2025, they added. "While European finance ministers are hoping [Treasury Secretary Janet ] Yellen can deliver swift US implementation through a legislative shortcut, that scenario remains unlikely and -- if at all possible -- it would not materialize until after the next presidential election," they wrote. Delayed implementation by Washington could in turn prolong digital taxes on US tech companies introduced by European countries such as France and could even fuel the adoption of digital levies at EU level, sparking trade spats between the United States and Europe. "Implementation of the OECD deal will also be a bellwether of EU-US capabilities to boost ongoing but contentious efforts to collaborate across a host of trade and tech issues," the Eurasia analysts said. -- Julia Horowitz and Chris Liakos contributed reporting. * * * * * * * * [ ] Search * US + Crime + Justice + Energy + Environment + Extreme Weather + Space + Science * World + Africa + Americas + Asia + Australia + China + Europe + India + Middle East + United Kingdom * Politics + The Biden Presidency + Facts First * Business + Markets + Tech + Media + Success + Perspectives + Videos * Opinion + Political Op-Eds + Social Commentary * Health + Life, But Better + Fitness + Food + Sleep + Mindfulness + Relationships * Entertainment + Stars + Screen + Binge + Culture + Media * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Work Transformed + Innovative Cities * Style + Arts + Design + Fashion + Architecture + Luxury + Beauty + Video * Travel + Destinations + Food and Drink + Stay + News + Videos * Sports + Pro Football + College Football + Basketball + Baseball + Soccer + Tokyo 2020 * Videos + Live TV + Digital Studios + CNN Films + HLN + TV Schedule + TV Shows A-Z + CNNVR * Audio * Coupons + CNN Underscored + Explore + Wellness + Gadgets + Lifestyle + CNN Store * Weather + Climate + Storm Tracker + Wildfire Tracker + Video * More + Photos + Longform + Investigations + CNN Profiles + CNN Leadership + CNN Newsletters + Work for CNN --------------------------------------------------------------------- Follow CNN Business * * * --------------------------------------------------------------------- Most stock quote data provided by BATS. 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