Global Minimum Tax Reform Boosts Revenue Without Job Losses

The OECD reported that implementing a global minimum tax on multinationals led to higher corporate tax revenues without impacting jobs or investments. Over 60 countries adopted the tax, increasing revenue by €79 billion to €109 billion. The tax ensures companies pay at least 15% in taxes globally.

The Organisation for Economic Co-operation and Development (OECD) revealed a significant rise in corporate tax revenue in countries applying the global minimum tax, without adverse effects on employment or investment levels.

The global minimum tax, aimed at combating the reduction in corporate tax rates by enabling countries to impose top-up taxes, was adopted by over 60 nations. Initially launched to address profit-shifting to low-tax jurisdictions, the policy boosted government earnings by €79 billion to €109 billion in its first year.

Despite diverging from previous projections, which anticipated higher revenue increases, the OECD study focused on the tangible effects observed in 2024. This analysis excluded U.S.-based multinationals due to a separate agreement that recognized the existing U.S. minimum tax.