G7: A minimum global level of corporate tax

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G7

Finance ministers from the G7 nations on Saturday pledged to commit to a minimum global level of corporate tax of at least 15%.

  • Following two-days of talks chaired by Chancellor Rishi Sunak in London, counterparts agree to reforms which will see multinationals paying tax in the countries where they do business;
  • As part of landmark deal, finance ministers also agree to the principle of a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate.

Chairing the G7 Finance Ministers meeting in London, Rishi Sunak rallied his counterparts to work together to tackle the tax challenges that arise from the global digital economy.

Following years of discussions, finance ministers agreed to reforms which will see multinationals pay their fair share of tax in the countries they do business.

They also agreed to the principle of a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate in.

OECD Secretary-General Mathias Cormann welcomed the ground-breaking agreement by G7 Finance Ministers on key elements of international tax reform designed to address the tax challenges of the digitalisation and the globalisation of the economy.

“Governments around the world need to be able to raise the necessary revenue to fund the essential public services and support that their populations require and expect, in a way that is efficient, least distorting and also fair and equitable”, said Mr. Cormann.

“Today’s consensus among the G7 Finance Ministers, including on a minimum level of global taxation, is a landmark step toward the global consensus necessary to reform the international tax system.

“There is important work left to do. But this decision adds important momentum to the coming discussions among the 139 member countries and jurisdictions of the OECD/G20 Inclusive Framework on BEPS, where we continue to seek a final agreement ensuring that multinational companies pay their fair share everywhere.”

Source/ Image Credit: OECD  G7 Information Center