Global Minimum Tax to Spur Country Interest in Tax Incentives

African countries will likely consider new tax incentives for companies to remain competitive under the new global minimum tax regime, policy analysts said Tuesday.

The 15% minimum tax—known as Pillar Two—became effective in January and is part of the Organization for Economic Cooperation and Development’s global tax deal agreed to by almost 140 countries in 2021. It applies to corporate groups with at least €750 million ($811 million) in annual revenue.

Pillar Two is meant to cut down on a “race to the bottom” between countries that offer corporate tax breaks to attract investment by ensuring a 15% minimum tax ...