Profit and Loss Statements and Balance Sheets allow for creative accounting. A few years ago Amazon paid no Federal income taxes against $140B in revenue. This tax will amount to an IQ test for large corporations' CFOs and accountants.
https://www.washingtonpost.com/us-policy/2021/06/05/g7-tax-us-yellen/G-7 countries reach agreement on 15 percent minimum global tax rate
The accord announced by finance ministers could reshape tax obligations of multinational corporations
“That global minimum tax would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the U.S. and around the world.”
In remarks at the close of the meeting, Yellen told reporters that the agreement represented the revival of multilateral cooperation after years of strain under President Trump.
Under the deal, the U.S. is expected to give up some taxing rights on overseas profits of U.S.-based tech giants.
The deal enables countries to tax 20 percent of the profits of “the largest and most profitable multinational enterprises” that have profit margins of at least 10 percent.
