The Organization for Economic Co-operation and Development (OECD) has issued an assessment of the effects thus far of the 15% global minimum tax (GMT). The report says that the GMT levied on large multinational enterprises (MNEs) under Pillar Two of the OECD framework has disincentivized the practice of profit shifting as intended. The GMT is estimated to reduce global low-taxed profit by about 80% — from 36% of all profit globally to about 7%. This reduction stems from both the decrease in profit shifting and the application of top-up taxes. The remaining low-taxed profit mainly reflects the impact of the substance-based income exclusion. Read the OECD’s assessment: https://bit.ly/3Ue4vtE
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