LONDON (Bloomberg) - The International Monetary Fund called on nations to agree on global rules for corporate-income taxation to avoid an eventual scenario where conflicts between countries make all of them worse off.
A multilateral agreement on taxes, like the solutions proposed by the U.S., is the sole way to ensure that highly profitable multinational firms pay sufficient tax in the places where they do business, including low-income countries, IMF Managing Director Kristalina Georgieva said on Tuesday.
The crises of Covid-19 and climate change present the world with an opportunity to rethink and fix the international tax system, Georgieva said in remarks prepared for a virtual book launch. The IMF supports the Inclusive Framework on Base Erosion and Profit Shifting at the Organization for Economic Cooperation and Development as a way to avoid tax conflicts, Georgieva said.