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G7 countries reach historic agreement to tax large multinationals

The richest nations in the world reached a major deal on Saturday. to close the cross-border tax loopholes used by some of the world’s largest companies

Group of Seven said it would return a minimum global corporate tax rate of at least 1

5 percent and impose measures to ensure tax payments are made in the countries where it operates.

“After many years of discussion The G7 finance ministers have reached a historic agreement to reform the global tax system to fit the global digital era,” British Finance Minister Rishi Sunak told reporters.

such agreement That could be the basis of next month’s global deal. aiming to end The “race to the bottom” that has been going on for decades. which countries They compete to attract big companies with very low tax rates and exemptions.

As a result, their public funds cost hundreds of billions of dollars. This is a shortage they urgently need to pay for the huge costs of supporting an economy hit by the coronavirus crisis.

Ministers meet face-to-face in London for the first time since the COVID-19 outbreak.

According to a copy of the final agreement seen by Reuters, the G7 ministers said they would “Keep a minimum global tax of at least 15% in each country.”

“We are committed to achieving an equitable solution to allocating the right to taxation. Market countries are entitled to a tax of at least 20% of profits in excess of the 10% margin for the largest and most profitable multinational enterprises,” the statement added.

The minister also agreed to move towards making companies Declare environmental impacts in a more standardized manner. To make it easier for investors to decide whether to fund them or not. which is the main goal of the United Kingdom

Wealthy nations have struggled for years to agree on ways to increase their income from large multinationals such as Google, Amazon and Facebook, which often record profits in jurisdictions where they pay little or no taxes.

President Joe’s Administration US Biden It has prompted negotiations to stall by offering a minimum global corporate tax rate of 15%, above the level in countries such as Ireland but below the lowest in the G7.

Our Standard: Thomson Reuters Trust Principles

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