Landmark moment for world economy with OECD plan that also covers prevention of profit-shifting Mathias Cormann Antony Blinken at the OECD headquarters in ParisThe OECD’s secretary general, Mathias Cormann, with the US secretary of state, Antony Blinken (right), at the organisation’s headquarters in Paris. Photograph: AFP/Getty Images


Efforts to force multinational companies to pay a fairer share of tax have taken a decisive step forward after 130 countries and jurisdictions agreed to plans for a global minimum corporate tax rate.

In a landmark moment for the world economy, the Organisation for Economic Co-operation and Development (OECD) issued a statement committing each of the countries to a two-pillar plan to radically reshape the global tax system.

Building on an agreement between the G7 in London last month, the latest breakthrough brings together all of the nations in the G20 group of the world’s biggest economies, including China, India, Brazil and Russia.

Some countries, however, including Ireland, Hungary and Estonia, have yet to sign up to the reforms, which are being negotiated with 139 participants in talks organised by the Paris-based OECD.