New clients receive a 3 month subscription to Xero & Dext on us!
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
• Beyond Accountancy
• World Class Accounting
• Meet The Team
• Our Culture
• Testimonials
• Trustpilot Reviews
• Join Our Team
More Than Just Accountants
At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.
Get in touch today to discover how Nordens can revolutionize your business.
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
• Accounting
• Auditing
• Bookkeeping
• Business Turnaround
• Capital Gains
• Company Tax Returns
• Construction Industry Scheme
• Corporate Finance
• Digital Transformation
• Enterprise Investment Scheme
• HR Services
• Inheritance Tax
• Management Accounts
• Payroll
• Seed Enterprise Investment Scheme
• Self Assessment
• SRA Audit
• Statutory Accounts
• Strategic Coaching
• Tax Auditing
• Tax Computations
• VAT Returns
• Workplace Pensions
View all Nordens Services
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
• Agriculture
• Creative & Media
• Construction & Real Estate
• Franchise
• Healthcare
• Property
• Recruitment
• Retail
• Sports & Entertainment
• Transport & Logistics
• Hospitality & Leisure
• Charity & Not-For-profit
• Independent Professional Sector
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
Discover why 175 businesses have voted our service as 5 star
Mitch Hahn
CEO - Nordens
Get In Touch
02085300720
enquiries@nordens.co.uk
The Retreat, 406 Roding Lane South, Woodford Green, IG8 8EY
Looking For Someone In Particular?
View Our About Page
A landmark agreement was signed by 136 nations allowing for a blanket corporation tax rate to come into effect. Co-ordinated by the Organisation for Economic Co-operation and Development (OECD), the two-pillar global tax reform plan is designed to enable a fairer tax system for large multi-national companies particularly technology companies. The global minimum corporate tax rate will be 15% and shall be imposed by 2023.
The OECD, who are based in Paris, reported that only four nations (Kenya, Nigeria, Pakistan, and Sri Lanka) refused to sign the deal with previous sceptics of the deal (Ireland, Hungary and Estonia) eventually signing up to the agreement. A new taxing legislation will be enforced allowing countries to levy a slice of the profits generated by a handful of the biggest businesses in the world, according to the sales achieved within each nation’s borders.
The global tax floor will only apply to the biggest firms who have annual revenues of €750m. We break down exactly what the landmark OECD agreement is, the implications on the global economy and what the potential further steps could be for global corporation tax.
What Is The Global Minimum Corporate Tax Rate?
The OECD two-pillar global tax reform plan provides a monumental change in corporation tax legislation right across the world. By introducing a global tax floor of 15%, it eliminates the use of tax havens for huge multi-national firms which have notoriously undercut tax payments and affected the economy across the world.
Under the first pillar of the global tax reform plan, it grants the powers for nations levy a slice of multinational organisations’ profits. The OECD have estimated that over than $125bn, equivalent to £92bn, of corporate profits from approximately 100 of the world’s largest multinational businesses would be reimbursed to the respective nations where they do business. The legislation will affect firms with global sales above €20bn (£17bn) and profit margins above 10%. 25% of all profit margins above 10% will be reallocated to the respective nation.
The second pillar of the agreement will set a global corporate tax rate of 15% across the world which will come into effect in 2023. The OECD have estimated that through this second pillar of the measure, it would reallocate an additional $150bn (approximately £110bn) collectively to governments across the world where multinationals do business.
Why Have Hundreds Of Nations Signed Up To The Global Minimum Corporate Tax Rate Legislation?
All 38 OECD members as well as all members of the G20 group have signed up to the landmark agreement. There was initial hesitancy from Ireland who agreed to join after being assured that the 15% corporate tax rate would not be increased further on down the line. Previously, Ireland had a set 12.5% corporate tax rate which was looked upon as favourable from large tech companies including Microsoft, Dell, Intel, IBM, SAP, Facebook, LinkedIn, Twitter, HubSpot and PayPal who all have major presence in the nation.
One of the fundamental reasons that the two-pillar corporate tax agreement was set into place, after a decade of campaigning from the OECD, was due to the stiff tax competition from nations. Nations such as Ireland, Hungary and Estonia, with corporate tax rates below the 15% threshold, were sceptical that they wouldn’t be able to attract foreign investment and large firms doing business. By introducing a unified corporate tax rate it provides stability and transparency for global tax reform that would wholly benefit the worldwide economy.
The UK Chancellor, Rishi Sunak, stated, “the deal would upgrade the global tax system for the modern age. We now have a clear path to a fairer tax system, where large global players pay their fair share wherever they do business”.
What Are The Potential Next Steps For Global Corporate Tax Reform?
Whilst the two-pillar global corporate tax plan has been warmly welcomed by the majority, there are still concerns regarding how effective it will be in holding big companies to account. The corporate tax rate average in industrialised nations is 23.5%, a significant difference to the 15% agreed in the OECD plan.
There are worries that through this legislation, there will be a race to the bottom for wealthy nations looking to cut corporate tax rates. This ‘shop window’ strategy will likely entice big multinational companies to set up base and create jobs, as opposed to doing this in less well-developed nations.
The global inequality, highlighted by COVID-19 and the subsequent vaccine rollout, will possibly persist through the corporation tax tug of war. Due to Ireland having assurances that the 15% would not increase in the future, this negative impact is likely to be experienced come 2023.
We hope this has outlined to you what the new OECD global corporate tax reform plan is and how it will affect the overall global economy. If you require any further information on corporation tax, or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.
At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.
Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.
Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.
Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.
Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.
Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.
With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.
Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews
Director - Metro Bank
Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.
Co-Founder - Chicmi Limited
Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.
Director - Rose Opticians
I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation
Founder & Director - Physio LDN
Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.
Principal - Pauline Quirke Academy
Great accountants, always available to offer advice. The team have transformed my business.
Founder - Dataphone
Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.
Director - Linekers
Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!
Founder - Foundation Sports Limited
A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.
Managing Director - Prime Time Boilers
I have been with Nordens for many years now and they are a great accountants.
Founder - Vivid Finishes
We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.
Managing Director - AMD Interior Architecture
Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.
Director - Forma London
Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!
We've always got our ears to the ground when it comes to interesting, useful and topical information relating to business and accountancy.
We love making videos that break down convoluted accountancy jargon into plain-talking, actionable and accessible facts.
In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.
Mark Norden
Founder
Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!
At Nordens, we're committed to keeping our clients updated on all things business strategy and news. Each week we update our newsletter subscribers on what really matters in the big bad world of business. That way, you can stay one step ahead!
Call: 0208 530 0720
Email: enquiries@nordens.co.uk
Interested In Nordens? Give us a call on 0208 530 0720 or or request a direct call back anytime between 8:00am to 6:00pm!
Accounting
Contractors
Sole Trader Accounting
Partnerships
Small Businesses
Medium Businesses
Large Businesses
Global Corporations
Charities
Privacy Policy - Cookie Policy - Sitemap - Covid19 Risk Assessment
© Nordens Limited 2001 - 2022
Nordens is a trading name of Nordens Limited, a limited company registered in England under company number 04709951. Our registered office is: The Retreat, 406 Roding Lane South, Woodford Green, Essex, IG8 8EY.
Speak to one of our experts with no strings attached, free, for one hour to help you and your business.
In celebration of our 18th birthday, we’ve launched our Refer-a-Friend scheme, allowing you to receive a thank you gift from us of up to £1,000 for successfully introducing a new client.
Speak to one of our experts with no strings attached, free, for one hour to help you and your business.
If you sign up as a client we'll even provide a 3 month subscription to Xero and Dext FREE!