Global tax agreement: Tunisia to lose 5% of tax revenue from multinationals (OTE)
05/02/2023 15:53, TUNIS/Tunisia

(TAP) - The entry into force of the Global Tax Agreement on January 1, 2023 could lead Tunisia to lose "5% of the possible tax revenue to be collected from multinationals", according to a note by the Tunisian Economic Observatory entitled "Why should the Tunisian state increase corporate tax in the 2023 finance law?," published Saturday.

According to this note, the aforementioned agreement signed by Tunisia stipulates that multinationals must pay a minimum corporate tax of 15%, while the effective tax rate of multinationals in Tunisia does not exceed 10%, as these companies benefit from tax incentives.

According to the Global Tax Agreement, if the effective tax rate in the source country is lower than 15%, the country of residence of the multinational is entitled to collect the difference between the national effective tax rate and the 15% rate.

As a result, Tunisia risks losing tax revenues of around 5% to high-income countries, which in fact represents half of the tax collected. In this context, the Observatory wonders: "Will the state budget take the necessary measures to avoid losing this part of the tax revenue?"

"The major reform of the international tax system finalised at the Organisation for Economic Co-operation and Development (OECD) on October 8, 2021 will ensure the application of a minimum tax rate of 15% to multinational enterprises (MNEs) from 2023," said the OECD.

"The landmark agreement, endorsed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than US$125 billion in profits from around 100 of the world's largest and most profitable multinational companies to countries around the world, so that these companies pay their fair share of tax regardless of the jurisdictions in which they operate and make profits.

As a reminder, the 27 Member States of the European Union agreed to introduce a minimum global tax of 15% on the profits of multinational companies, on December 15, December 2022.

"The OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting), published on February 2, 2023, provides technical guidance to help governments implement the landmark reform of the international tax system, which will ensure that multinational enterprises (MNEs) are subject to a minimum tax rate of 15%."

"Technical work will continue with the aim of finalising a new multilateral treaty by mid-2023 for entry into force in 2024," the OECD said.

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