A minimum corporate tax plan has been signed by 130 OECD nations. 

At a recent Organisation for Economic Co-operation and Development (OECD) summit, more than 100 countries, including Australia, backed the global 15 per cent minimum tax rate.

The minimum rate is designed to stop the world’s biggest companies from dodging tax by shifting profits to low taxing countries like Ireland or the Canary Islands. The world leaders want profits taxed in the countries where the money is earned.

Analysis suggests the new tax regime could bring in about $US150 billion in additional global tax revenues each year. 

The plan has been officially supported by 130 countries, representing more than 90 per cent of the global economy. 

“With a global minimum tax in place, multinational corporations will no longer be able to pit countries against one another in a bid to push tax rates down,” US President Joe Biden said in a statement.

“They will no longer be able to avoid paying their fair share by hiding profits generated in the United States, or any other country, in lower-tax jurisdictions.”

More technical details are expected to be presented by October, with plans to implement the new rules by 2023.

A total of nine countries did not sign, including low-tax EU OECD members Ireland, Estonia and Hungary.