'Global deal to stop MNC tax avoidance likely by 2023 end'

A global tax convention to tackle aggressive tax avoidance by the top 100 multinational corporations, especially tech giants, is likely to be signed by as many as 138 countries by the end of the year for implementation in 2025, David Bradbury, deputy director of the Organisation for Economic Cooperation and Development’s (OECD) Centre for Tax Policy and Administration said.8 [e-mail]

- Gireesh Chandra Prasad

A separate but related framework for individual countries to enforce a 15% minimum global corporate tax rate is also being given finishing touches, he said in an interview after discussions on the subject by G20 leaders on Saturday.

Bradbury, who was in New Delhi for the summit, said that the two elements of the proposed tax reform--pillar one which gives taxation rights to countries like India where people consume services of MNCs incorporated abroad, and pillar two prescribing a global minimum corporate tax rate--could come as separate measures. Edited excerpts:

G20 leaders have said significant progress has been achieved on global tax reform. What is the status now?