The agreement builds on the two-pillar approach outlined by the OECD and aims to tackle the challenges arising from an increasingly globalized and digital economy.

Key Points:

..Under Pillar One, the largest and most profitable multinational firms will be required to pay tax in the countries where they do business, rather than simply where the countries have headquarters or hold intangible property.

..Under Pillar Two, there will be a global minimum corporate tax rate of 15% operated on a country-by-country basis.