Government prepares minimum taxation of 15% on multinational profits

The Secretary of International Affairs at the Ministry of Finance, Tatiana Rosito, stated that the federal government is preparing to impose a minimum tax of 15% on the profits of multinational companies. In 2021, the Organization for Economic Co-operation and Development (OECD) reached an agreement with 136 countries to implement a global minimum tax of 15% on multinationals, with the aim of preventing them from avoiding taxes by transferring profits to countries with lower rates.

“What I can say is that the Revenue [Federal] is already organizing itself for the implementation of this minimum taxation on multinationals”, said the secretary this Thursday (9) in an interview with Reuters. In October, the OECD published a manual in partnership with the G20 on the topic. Brazil’s decision comes on the eve of the country assuming the presidency of the G20, in December.

The OECD estimates that the global minimum tax could generate up to US$200 billion in additional revenue annually for countries. According to the secretary, Brazil will also support the adoption of taxation on the so-called digital economy, targeting big techs, when it assumes the presidency of the G20. Furthermore, the government will defend that the “massive global mobilization of resources for the ecological transition is part of a new relationship between public and private”.