The proposal outlines a labour-backed Alternative Corporate Minimum Tax (CAMT) aimed at ensuring multinational companies pay meaningful taxes in countries where they generate real economic activity, especially Ghana, Nigeria, Senegal, Tanzania and other African countries. It responds to weaknesses in the (OECD) global minimum tax system by introducing a domestic minimum tax based on a share of global profits apportioned using sales, employment, and payroll, with a 25% effective minimum rate applied to those profits. Companies would pay whichever is higher: their regular corporate tax or the CAMT calculation.
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The Alternative Corporate Minimum Tax (CAMT) is a union proposal to ensure multinational enterprises (MNEs) pay a fair share of tax in countries where they actually do business, particularly Nigeria. It is intended as a stronger, more locally controlled alternative to the OECD’s Global Minimum Tax system, which is seen as favouring wealthy countries where corporations are headquartered rather than countries where profits are generated. The proposal argues that existing rules allow profit shifting and aggressive tax avoidance that deprive developing countries of vital public revenue.
The CAMT would apply to large multinational groups with significant global and African revenue. Companies would calculate their tax under normal corporate tax rules and also under the CAMT formula. If the CAMT amount is higher, they would pay the difference. Profits attributable to the countries where they are generated would be determined using a formulary apportionment method based on three factors: sales (60%), number of employees (20%), and payroll costs (20%). A minimum effective tax rate of 25% would apply to the portion of global profits allocated to the generating countries. This approach is meant to reflect real economic activity, reduce opportunities for profit shifting, and align corporate taxation more closely with how labour income is taxed.
The proposal includes detailed rules on revenue sourcing, reporting, audits, penalties, and loss treatment. Large MNEs would be required to file global financial information and country-level data to support the calculations. Tax authorities would have strong enforcement powers, including penalties for non-compliance and the ability to estimate profits where companies underreport. The bill would also repeal parts of existing tax law that conflict with the new system and give the finance minister authority to issue further regulations.
The proposal discusses how the model could be adapted across different countries, with adjustments to fit their legal frameworks. The CAMT is presented as a tool to protect national tax bases, curb tax avoidance, strengthen progressive taxation, and raise additional public revenue to fund essential services and development.