Q. With reference to Global Minimum Corporate Tax, consider the following statements:
1. It will cover firms with global sales above 20 bn Euros ($23 billion) and profit margins above 10%.
2. Recently 136 countries agreed to enforce a pact to impose a minimum corporate tax rate of 15%. India is yet to join this group.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Statement 1 is correctIt will cover firms with global sales above 20 bn Euros ($23 billion) and profit margins above 10%. A quarter of any profits above 10% is proposed to be reallocated to the countries where they were earned and taxed there. 

Statement 2 is incorrect: India with another 135 countries agreed to enforce a pact to impose a minimum corporate tax rate of 15%, and an equitable system of taxing profits of big companies in markets where they are earned. Kenya, Nigeria, Pakistan and Sri Lanka have not yet joined the deal. 

Source: Taxing big tech where it earn profits