SOUTH Africa has joined 130 other countries in calls to introduce a global tax. In talks held by the Organisation for Economic Cooperation and Development (OECD) at the end of June, the countries agreed to a plan to set a minimum corporate tax rate and establish a new regime for sharing the taxes imposed on the profits of multinational firms.
This will see the implementation of a two-pillar package that will result in a fundamental shift in the way international taxation has worked in the past, say tax experts at Webber Wentzel.
“The first pillar was designed to find a more equitable way of taxing multinational digital businesses (e.g. Google, Amazon, Netflix, Facebook), since they currently pay taxes in a different jurisdiction from those market jurisdictions where they earn significant revenue.
“However, this pillar will impact more than the traditional digital economy as it will affect any multinational business with
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