Key facts
- The OECD reported that the global minimum tax on multinational companies increased corporate tax revenues.
- The tax did not lead to a corresponding loss of jobs or investment, according to the OECD.
- The global minimum tax aims to ensure companies face an effective tax rate of at least 15%.
- The OECD estimated the tax boosted government revenue by €79 billion to €109 billion in its first year.
- The study examined company behavior after the tax's introduction in 2024.
Countries that have implemented a global minimum tax on multinational companies have seen their corporate tax revenues increase without a corresponding negative impact on jobs or investment, according to a study by the Organisation for Economic Co-operation and Development (OECD).
The global minimum tax, designed to prevent a race to the bottom in corporate taxation, allows countries to levy top-up taxes on profits taxed below 15% elsewhere. This measure aims to reduce the incentive for companies to book profits in low-tax jurisdictions.
More than 60 countries and territories have adopted these rules, with many others in the process of implementation. The OECD's analysis, which examined observed company behavior after the tax's introduction in 2024, estimated that the reform increased government revenue by €79 billion to €109 billion in its first year, representing 2.4% to 3.4% of global corporate income tax receipts.
The study found that multinational groups with annual revenues above €750 million, which are subject to the tax, experienced higher effective tax rates. However, the evidence for any significant impact on investment or employment was limited. This real-world data contrasts with earlier OECD estimates that relied on modeling. The revenue figures for the first year are below earlier projections, reflecting the initial phase of implementation. The study also noted that it does not account for a subsequent agreement by the Trump administration that exempted U.S.-headquartered multinationals from certain elements of the regime.