More than 130 countries have agreed to a new global tax deal that could be complete before the end of the month.
The New York Times reports that the nations involved in the negotiations agreed to a new global standard earlier this month after years of negotiations. The main change is a 15% global tax on multinational corporations, a change from the previous policy of those businesses only being taxed in their country of origin.
Negotiations were lead by The Organization for Economic Cooperation and Development (OECD).
"Today’s agreement will make our international tax arrangements fairer and work better,” Mathias Cormann, OECD secretary general, said in a statement, according to the Times. "We must now work swiftly and diligently to ensure the effective implementation of this major reform."
Ireland, one of the main holdouts, secured an exception on its corporate tax, and was joined by Hungary and Estonia in signing on during the final days leading up to the finalization of the deal. Kenya, Nigeria, Pakistan and Sri Lanka chose not to sign the agreement.
"The key point is to have an agreement being adopted, no later than the end of this month, on the new international taxation system," Bruno Le Maire, French finance minister and proponent for the new taxation system, told CNBC News. "We could either next week during the Washington meetings, or at the G-20 meeting in Rome at the end of October, sign the final agreement under the international taxation system."
The Guardian reports that Ireland had been a holdout due to the 15% minimum tax that would raise its famous 12.5% corporate tax rate that makes it an alluring country for many companies. Le Maire noted that compromise was possible with this rate and that it was no longer the primary sticking point.
"We see that Ireland is in the process of evolving on this subject and that a compromise can emerge around 15% as the effective rate," Le Maire said, according to The Guardian.
The Wall Street Journal Editorial Board noted in a July piece that Congress should "read the fine print carefully." The board raises caution over joining the tax plan, citing concerns about the unchecked growth of taxes in the future and a lack of accountability for China, in addition to the targeting of U.S.-based tech companies.