The ability of 136 countries, representing more than 90% of worldwide GDP, to agree on a uniform 15% global minimum tax illustrates the interest among world leaders in limiting tax avoidance by multinational companies, says Fitch Ratings. The multilateral agreement reached last week is expected to become effective in 2023. A higher marginal tax rate is not a key credit risk for US non-financial corporates, as changes in tax laws may not necessarily lead to higher cash tax payments, due to exemptions, tax credits and issuers’ ability to defer tax expense. Growing prospects of a global minimum tax rate may cause ... (full story)