World
Can new EU corporate tax rules make big business pay its fair share?
A landmark global deal setting a minimum corporate tax rate of 15% on multinational companies came into force in the European Union on 1 January.
The EU has for years tried to flex its muscles on corporate tax evasion by introducing a raft of new laws and lodging high-profile court cases against multinationals.
But some of its own member states – such as Ireland, Luxembourg and Cyprus – have continued to allow high-profit companies to dodge both taxes and scrutiny. Profit shifting worldwide has also remained high, causing losses worth billions of euros for the continent while economic inequality deepens.
Now, companies with revenues of at least €750 million active in any of the 27 EU states will face a minimum corporate tax rate of 15%. The bloc’s economy commissioner Paolo Gentiloni described the new year rules as “a new dawn for the taxation of large multinationals”.
The move is part of a sweeping overhaul of the global tax system agreed by some 140 Organisation for Economic Co-operation and Development (OECD) countries in 2021 after a decade of negotiations, and aims to crack down on governments that slash their corporate tax bills to attract investment.
Other countries such as the UK, Norway, Australia, Japan and Canada are also implementing the measures.
While the new interlocking rules have been hailed as groundbreaking, experts told Euronews there is a need to close crucial loopholes to ensure big business is held accountable.
A ‘revolution’ in tax justice
The OECD deal consists of two pillars, the first of which aims to ensure companies pay tax where they do business. The second pillar sets the global minimum tax rate of 15%.
In an interlocking system hailed revolutionary, if one country fails to tax a multinational at this rate, other countries can charge a so-called “top-up tax”.
This does not mean EU countries will necessarily adjust their corporate tax rate to the 15% baseline, since other countries will be able to step in to collect the taxes due from multinationals that pay their levies in low-tax jurisdictions.
This means that in a hypothetical scenario, a French multinational operating in Senegal and shifting its profits to Ireland could see either France or even Senegal charge a top-up tax if it doesn’t pay the minimum rate of 15% in Ireland.
“The concept is revolutionary,” according to Quentin Parrinello, a senior policy adviser at the EU Tax Observatory.
“It’s the first time we have more than 140 countries, including all major economic actors, agree that multinational companies should pay a minimum amount of tax on the profits it reports.”
“There is, in theory, no incentive for a country not to apply the minimum tax because if they don’t, another country will get the tax revenues,” Parrinello added.
Most EU countries have already transposed the EU Directive – that makes the new rules a reality – into law. Five countries – Estonia, Latvia, Lithuania, Malta and Slovakia – have informed the European Commission that they will delay implementation as they have fewer than twelve affected multinationals operating within their borders.
Too many loopholes
But despite its promise, experts fear the reform alone cannot stamp out tax havens or prevent a so-called ‘race to the bottom’ of harmful tax competition between governments.
States can still abide by the new minimum rate whilst offering generous tax credits and other deductions that effectively reduce the tax rate below 15%. Many states are already introducing attractive transferable credits, grants and subsidies to compete for investment.
“We already see this, for example with the IRA (Inflation Reduction Act) in the US. We also have countries such as Ireland, Switzerland, and the Caymans already thinking of their own systems,” Parrinello explained.
Another loophole in the deal allows firms to exclude certain amounts of profits – equal to 8% of the value of tangible assets and 10% of payroll in the first year – from the tax base.
The EU Tax Observatory estimates that this loophole could cost the EU some €26 billion in its first year of implementation. A loophole-free 15% minimum tax could have raised around $95 billion (€87 billion) in the bloc in 2023, the watchdog says, dropping to just $67 billion (€61 billion) with the current design.
“There will not be an end to harmful tax competition and the race to the bottom on taxation,” Chiara Putaturo, Inequality and Tax Policy Advisor at Oxfam’s EU office, said.
“We are seeing a lot of countries like Ireland, Switzerland and also Bermuda changing some of the tax systems they had before to introduce generous refundable tax credit so that they will still be able to have a lower and lower tax rate,” she added.
“The minimum tax is a floor,” Parinello said. “It’s much better to have a floor than nothing. But if you drill holes in the floor, you weaken the overall structure.”
World should move in lockstep
The OECD-designed system is unique in the way it incentivises all world nations to move in lockstep. Countries infamous for attracting giant companies with attractive tax incentives – such as Barbados and Panama – are also signatories.
An overwhelming majority of Swiss voters (78.5%) also backed the new rules in a consultation last June, putting pressure on their government to swiftly adopt the rules.
The US and China have not yet passed the necessary legislation but are likely to be incentivised to do so to ensure other countries do not top up their own tax collections at their expense.
But Putaturo warned that the 15% rate, which is lower than the global average, lacks ambition.
“The majority of countries, globally, have an effective tax rate which is higher than 15%. So this could even bring some countries to lower their tax rate, in a race to the minimum rather than a race to the bottom,” Putaturo explained.
“The minimum tax also does almost anything in terms of the redistribution of tax revenues. The so-called resident countries, where multinationals are headquartered, will have the right to top up the tax to 15% if the tax haven does not collect the tax due. This is a problem for poorer countries because the resident countries are mainly rich countries,” she added.
World
Video: How Venezuelans Worldwide Reacted to Overthrow of Maduro
new video loaded: How Venezuelans Worldwide Reacted to Overthrow of Maduro
By McKinnon de Kuyper
January 4, 2026
World
Trump says Cuba is ‘ready to fall’ after capture of Venezuela’s Maduro
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President Donald Trump late Sunday predicted Cuba was “ready to fall” after U.S. forces captured Venezuelan leader Nicolás Maduro, warning that Havana can no longer rely on Caracas for security and oil.
Trump said Cuba’s fate is now directly tied to Maduro’s ouster and the collapse of Venezuela’s ability to bankroll allies in the region.
Asked if he was considering U.S. action in Cuba, Trump replied: “I think it’s just going to fall. I don’t think we need any action. Looks like it’s going down. It’s going down for the count.”
The president’s comments during a press gaggle with reporters aboard Air Force One come after Saturday’s capture of Maduro and his wife on charges tied to a narco-terrorism conspiracy. The audacious operation has sent shockwaves through allied governments in the region, with Cuban officials calling for rallies in support of Venezuela and accusing the U.S. of violating sovereignty.
MADURO AND ‘LADY MACBETH’ CILIA FLORES MARRIAGE SPELLS ‘WORST CASE’ CUSTODY SCENARIO
President Donald Trump speaks with reporters while in flight on Air Force One, Sunday, Jan. 4, 2026, as returning to Joint Base Andrews, Md. (AP Photo/Alex Brandon)
U.S. officials say Cuban security forces played a central role in keeping Maduro in power. Secretary of State Marco Rubio said Cuban operatives effectively ran Venezuela’s internal intelligence and security operations – including personally guarding Maduro and monitoring loyalty inside his government.
Protestors rally outside the White House, Saturday, Jan. 3, 2026, in Washington, after the U.S. captured Venezuelan President Nicolás Maduro and his wife in a military operation. (Julia Demaree Nikhinson/AP Photo)
“It was Cubans that guarded Maduro,” Rubio said. “He was not guarded by Venezuelan bodyguards. He had Cuban bodyguards.”
Cuba’s government acknowledged Sunday that 32 Cuban military and police officers were killed during the American operation in Venezuela, marking the first official death toll released by Havana. Cuban state media said the officers had been deployed at the request of Caracas and announced two days of national mourning.
US CAPTURE OF MADURO THROWS SPOTLIGHT ON VENEZUELA’S MASSIVE OIL RESERVES
Trump confirmed Cuban casualties while traveling back to Washington.
“A lot of Cubans were killed yesterday,” he said. “There was a lot of death on the other side. No death on our side.”
Venezuelan leader Nicolás Maduro and Cilia Flores face ‘worst case scenario’ in U.S. custody, according to expert, with federal indictments on drug and weapons charges. ( Juan BARRETO / AFP via Getty Images)
Trump also took aim at neighboring Colombia, accusing its leadership of fueling drug trafficking into the U.S.
UN AMBASSADOR WALTZ DEFENDS US CAPTURE OF MADURO AHEAD OF SECURITY COUNCIL MEETING
“Colombia is very sick, run by a sick man who likes making cocaine and selling it to the United States,” Trump said, adding that the country, “is not going to be doing it for a very long time.”
President of Venezuela Nicolás Maduro speaks during a military ceremony commemorating the 200th anniversary of the presentation of the ‘Sword of Peru’ to Venezuelan independence hero Simón Bolívar on November 25, 2025, in Caracas, Venezuela. (Jesus Vargas/Getty Images)
He suggested the U.S. was prepared to act against narco-trafficking networks operating by land and sea, citing recent interdictions.
Trump also revived his long-standing focus on Greenland, arguing the Arctic territory is critical to U.S. security amid growing Russian and Chinese activity.
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“We need Greenland from the standpoint of national security,” Trump said. “Greenland is covered with Russian and Chinese ships all over the place.”
Trump has framed Saturday’s operation as part of a broader effort to reassert U.S. dominance in the Western Hemisphere, invoking the Monroe Doctrine and warning that hostile regimes can no longer rely on one another for survival.
Maduro is set to be arraigned in federal court in New York on Monday.
The Associated Press contributed to this report.
World
Trump’s abduction of Maduro escalates concerns over potential war with Iran
Washington, DC – Hours after the United States announced the abduction of Venezuelan President Nicolas Maduro, Israeli politician Yair Lapid issued a warning to Tehran: “The regime in Iran should pay close attention to what is happening in Venezuela.”
The forcible removal of Maduro from power came less than a week after US President Donald Trump met with Israeli Prime Minister Benjamin Netanyahu and threatened to launch new strikes against Iran.
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Although Washington’s tensions with Caracas and Tehran have different roots and dynamics, analysts say Trump’s move against Maduro raises the prospects of war with Iran.
“A new lawlessness makes everything less stable and war more likely,” said Jamal Abdi, president of the National Iranian American Council (NIAC).
“Whether Trump becomes enamoured with ‘surgical’ regime change, or gives Netanyahu a US imprimatur for similar actions, it’s hard not to see how this gives momentum for the many actors pushing for renewed war with Iran.”
He added that Maduro’s abduction could prompt Iran “to do something that triggers military action”, including developing its own military deterrence or preempting US or Israeli strikes.
Negar Mortazavi, a senior fellow at the Center for International Policy, also said the US actions in Venezuela show Trump’s maximalist aims, further dimming the chances of diplomacy.
“What I see and hear from Tehran is that they are not interested in negotiating with the Trump administration the way this administration signals that they want total surrender,” Mortazavi told Al Jazeera.
“So, not much chance for diplomacy at the moment, which then opens the path to the opposite road, that is conflict. Right now, Israel, Iran and the US are on a path to potential conflict.”
Abdi echoed that assessment. “This action reinforces every doubt and suspicion about US intentions, and gives more credence to those in Iran who say engaging the US is useless and [that] developing a nuclear deterrent is vital,” he told Al Jazeera.
Iran-Venezuela alliance
The US raid that abducted Maduro and brought him to the US came after months of intensifying rhetoric from Trump against the Venezuelan government.
US officials have accused Maduro of leading a drug organisation, and Trump and his aides have been increasingly arguing that Washington is entitled to Venezuela’s vast oil reserves.
Secretary of State Marco Rubio has also been emphasising Maduro’s ties to Iran, accusing Caracas, without evidence, of providing the Lebanese armed group Hezbollah a foothold in the Western Hemisphere.
Maduro is a close ally of Iran, and the two heavily sanctioned countries have been pushing to deepen their trade ties, which are estimated to be in the billions of dollars.
So, with Maduro gone, Iran’s small network of allies may shrink further, after the fall of leader Bashar al-Assad in Syria and the weakening of Hezbollah in Lebanon.
The Iranian government was quick to condemn the US attack on Venezuela, calling on the United Nations to intervene and halt the “unlawful aggression”.
“The US military aggression against an independent state that is a member of the UN represents a grave breach of regional and international peace and security,” the Iranian Ministry of Foreign Affairs said in a statement.
“Its consequences affect the entire international system and will further expose the UN Charter-based order to erosion and destruction.”
On Saturday, Rubio suggested that Maduro’s abduction carried a message to all of Washington’s rivals in the Trump era.
“When he tells you that he’s going to do something, when he tells you he’s going to address a problem, he means it,” the top US diplomat told reporters.
But Iranian Supreme Leader Ali Khamenei doubled down on his defiant rhetoric after the US raid in Caracas.
“We will not give in to the enemy,” Khamenei wrote in a social media post. “We will bring the enemy to its knees.”
Trump’s threats
Last week, Trump hosted Netanyahu in Florida and threatened to bomb Iran again if the country rebuilds its missile or nuclear programmes.
“Now I hear that Iran is trying to build up again, and if they are, we’re going to have to knock them down,” Trump said. “We’ll knock them down. We’ll knock the hell out of them.”
Israel launched a war against Iran in June, killing the country’s top military commanders, several nuclear scientists and hundreds of civilians.
The US joined in the attack, bombing Iran’s three main nuclear sites.
While Trump has often reiterated that the US strikes “obliterated” Iran’s nuclear programme and celebrated the war as a success, the Iranian governing system survived the assault.
Tehran responded with barrages of hundreds of rockets against Israel, dozens of which penetrated the country’s multi-layered air defences, and Iranian forces were able to keep firing until the final moments of the war, before the ceasefire came into effect.
Some critics argue that regime change was and remains Israel’s goal in Iran, and Trump appears to be increasingly buying into that objective.
On Friday, Trump warned that the US is “locked and loaded” and ready to attack Iran if the Iranian government kills protesters amid the ongoing but sporadic antigovernment demonstrations across the country.
He renewed the same threat late on Sunday. “If they start killing people like they have in the past, I think they’re going to get hit very hard by the United States,” the US president said.
So, could the US carry out a Venezuela-style government decapitation in Iran?
NIAC’s Abdi noted that Israel has already tried to kill the country’s top leaders, including President Masoud Pezeshkian, in June.
Trump also repeatedly threatened Khamenei with assassination, and Israeli officials confirmed that they sought to “eliminate” the supreme leader during the war.
“Iranian officials have said they accordingly have plans in place so that killing or removing senior leaders does not paralyse or topple the regime,” Abdi said.
“It would be far messier to run a ‘snatch and grab’ operation on Iran, given their ability to retaliate against US interests and personnel.”
Venezuela without Maduro
Even in Venezuela, removing Maduro has not translated into a regime collapse, at least for now.
On Sunday, Vice President Delcy Rodriguez, now Venezuela’s acting president, stressed that Maduro remains the country’s only leader and condemned the US attack.
She also suggested that Israel was involved in the abduction of Maduro, a vocal critic of the US ally.
“Governments around the world are shocked that the Bolivarian Republic of Venezuela has become the victim and target of an attack of this nature, which undoubtedly has Zionist undertones,” Rodriguez said.
Trump responded by threatening the acting Venezuelan president, telling The Atlantic magazine that she would pay a “very big price, probably bigger than Maduro” if she did not acquiesce to US demands.
So, the US president’s plans for “running” Venezuela and taking its oil are not complete yet, and will likely require more military action.
“I doubt Venezuela can be a ‘one and done’ or a quick ‘in and out’ situation, which is Trump’s favourite model. His brand is that he engages in quick shows of force, not forever wars,” Mortazavi said.
She cited swift operations that Trump has ordered, including the killing of ISIL (ISIS) leader Abu Bakr al-Baghdadi in 2019, the assassination of top Iranian General Qassem Soleimani in 2020, and the attack on Iran’s nuclear sites in June.
“Most Americans are tired of forever wars, especially in the Middle East, so the Trump administration knows they can’t sell more forever wars to Americans,” Mortazavi said.
But Trump has already floated the prospect of a ground invasion of Venezuela.
“We’re not afraid of boots on the ground,” he said. “We don’t mind saying it, but we’re going to make sure that that country is run properly. We’re not doing this in vain.”
Abdi said that a long-term US involvement in Venezuela could indirectly stave off war with Iran.
“There is also the possibility that the US gets bogged down in ‘running’ Venezuela and doesn’t have the bandwidth to wage, or to support Israel launching, the next Iran war,” he told Al Jazeera.
“Iran was next on the menu after the US invaded Iraq in 2003, and we know what happened there, and Trump may not want to pronounce ‘mission accomplished’ just yet.”
The oil question
Still, some critics – including Republican US Congresswoman Marjorie Taylor Greene – have argued that if the US succeeds in controlling Venezuela’s oil resources, it will be able to offset energy market disruptions from a possible war with Iran.
“The next obvious observation is that, by removing Maduro, this is a clear move for control over Venezuelan oil supplies that will ensure stability for the next obvious regime change war in Iran,” Greene wrote on X on Saturday.
About 20 percent of the world’s oil flows through the Strait of Hormuz, which Iran may push to shut down in the case of an all-out war.
Abdi said that Venezuelan oil “could theoretically provide some cushion” to the loss of exports from the Gulf region.
“But this would mean a lot of things going right for the US in Venezuela, and it is probably far too soon to make that judgement,” he said.
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