(Bloomberg), A major overhaul of corporate taxation was supported by 136 countries. This included a resolution of key disagreements over the amount of a global minimal rate and an end for new digital taxes, which the U.S. considers discriminatory.

Years of missing deadlines, wrangling about how to manage global tech companies such as Facebook Inc (NASDAQ:). and Alphabet (NASDAQ:) Inc.’s Google, Friday’s deal included a 15% minimum rate for corporations and the main parameters of how much profits of the 100 or so biggest multinationals would be taxed in more countries: 25% of profits over a 10% margin.

The deal moves a step closer to ending what Treasury Secretary Janet Yellen calls a global “race to the bottom” among countries luring companies with ever-lower tax rates. As the chair, Organization for Economic Cooperation and Development said that a lower minimum rate can raise annual government incomes to $150 billion. New rules will reallocate $125 million of profit in nations with large corporate revenues, but not physical presence.

The deal includes all countries of the Group of 20 European Union, OECD and OECD. It was announced Friday in Paris. 

In addition, countries agreed not to impose new digital services taxes as of Friday, though the deal didn’t include specifics on when existing levies will be repealed.

Friday’s agreement marks a victory for global negotiations that almost ground to a halt during Donald Trump’s presidency and spiraled into trade tensions with unilateral measures and threats of retaliatory tariffs. A final agreement could provide new revenues to governments that are facing massive debt obligations after the Covid-19 epidemic. 

“The alternative to this happening is that we see the growth of unilateral tax measures, we see the slow erosion of our global tax architecture,” Irish Finance Minister Paschal Donohoe, whose government made a crucial last-minute concession to sign up to the deal, told Bloomberg Television on Friday before the OECD announcement. “All of those things would bring additional risks, additional instability.”

This latest agreement builds upon a July preliminary deal in which governments reached an initial consensus on the key elements of the plan, including the rules for profit reallocation.

The OECD has been discussing the topic for years. It now splits it into two pillars. Pillar One deals with tax allocation and Pillar Two aims to establish a minimum global corporate tax rate.

Of the countries involved in the talks, Kenya, Nigeria, Pakistan, and Sri Lanka haven’t signed the deal, the OECD said.

The accord “is a raw deal for developing countries” who will get “next to nothing in extra direct revenue from this agreement,” Didier Jacobs, tax policy lead for poverty-fighting group Oxfam America, said in a statement.

G-20 is expected to approve these plans during meetings of finance officers next week, and another summit at the end the month.

The OECD then needs to prepare draft legislation for the implementation of minimum tax rules as well as a multilateral convention, which could have an impact on a number of bilateral agreements.

Pillar One of the multilateral agreement to implement Pillar One requires countries to abandon existing digital taxes and other similar measures. Future ones will not be introduced. The convention will also determine which unilateral measures cannot be implemented under the agreement.

France was the first European nation to levy the U.S. technology giants’ revenues. It has pledged that it will make its abolition legally binding as soon as the new OECD rules take effect. 

“This agreement at the OECD is clearly a tax revolution which will lead to less unfairness, to more justice, to more efficiency in the way we will tax digital giants and the way we will put in place a minimum taxation,” France’s Finance Minister Bruno Le Maire said Friday.

The OECD aims to create a multilateral treaty next year. It will be implemented in 2023. It could be ambitious for certain countries, especially the U.S.

Republicans warn they won’t support a deal that gives foreign governments revenues. Patrick Toomey, a top senator has stated the Senate will not ratify.

Republican Party Stance

The GOP reiterated the stance Friday, as Senate Finance Committee Republicans warned the Biden administration against “circumventing the Senate’s constitutional treaty authority in implementing a global tax agreement.”

Switzerland claimed that the OECD timeline violates its national laws and that it won’t introduce new rules until 2023.

The reaction of tech companies to the agreement was mixed.

“We are encouraged by the governments’ commitment not to impose newly enacted unilateral tax measures on any company,” Jason Oxman, president of the Information Technology Industry Council, said in a statement. “At the same time, we continue to call for the urgent withdrawal of all those unilateral tax measures currently in place.”

Also, countries agreed to exceptions from minimum tax — an issue that had been a matter of contention in the days before the agreement.

A 5% tax cut for income linked to payroll and tangible assets will apply — the same as what was agreed upon in July.

Friday’s deal also built in a 10-year transition period during which the carveout will decline, starting from 8% for tangible assets and 10% for payroll.

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