The new measures, which are due to be rolled out in 2020, take a “two pillar” approach that will see companies pay more in countries despite the lack of a physical presence and profit in those regions.
Those companies that continue to book profits in offshore tax havens will then be subject to a global minimum tax rate.
The move from G20 ministers is set to face opposition from Washington, which plans to retaliate against officials in Europe hoping to impose new taxes on US tech firms.
The technology industry has warned that the White House may take serious measures against any tax crackdown. Jennifer McCloskey, vice president of policy at the Information Technology Industry Council, a trade association headquartered in the US capital, said any taxes perceived to be discriminatory against American companies could face an investigation.
If I could I would be buying all the stock I could get in tax planning consulting companies. They’re going to have so much work if this comes to pass that they’ll have trouble finding room for all the money.