Global Minimum Tax: Is This the End of Tax Havens?

Corporate tax rates have trended down for years on a global scale. It is obvious that increasing globalization has intensified international competition for multinational tax dollars. Especially small countries are reinventing themselves as tax havens vying for global players to settle on their shores. However, the socioeconomic detriments from tax income losses in higher taxing countries far outweigh any benefits to the country that lures the capitalist heavy-weights to their low-tax lands. 

This is where the OECD initiative Base Erosion and Profit Shifting (BEPS) is trying to effect change. The objective is to expand the international taxable profit base and distribute tax income more fairly.According to OECD calculations, introducing a worldwide minimum tax would raise global corporate tax volume by up to USD 100 billion per annum. The OECD plans for a fairer distribution of tax income would add another USD 100 billion.