CURRENT AFFAIRS

Detailed explanation-1: -What is it? EU members have agreed to implement a minimum tax rate of 15% on big businesses in accordance with Pillar 2 of the global tax agreement framed by the Organisation for Economic Cooperation and Development (OECD) last year.

Detailed explanation-2: -The OECD developed a proposal featuring a corporate minimum tax of 15% on foreign profits of large multinationals, which would give countries new annual tax revenues of USD 150 billion.

Detailed explanation-3: -Corporate Tax Rate in European Union is expected to reach 21.30 percent by the end of 2023, according to Trading Economics global macro models and analysts expectations. In the long-term, the European Union Corporate Tax Rate is projected to trend around 21.30 percent in 2024, according to our econometric models.

Detailed explanation-4: -Portugal had the highest combined corporate income tax rate in 2021, reaching nearly 31.5 percent, and was followed by Germany with a rate of 29.94 percent. On the other hand, Hungary had the lowest combined corporate income tax rate, reaching just nine percent in 2021.

Detailed explanation-5: -Corporations in the United States pay federal corporate income taxes levied at a 21 percent rate. Forty-four states and D.C. also levy taxes on corporate income, with top marginal rates ranging from 2.5 percent in North Carolina to 11.5 percent in New Jersey.