G-7 Nations Back 15% Global Minimum Tax for Tech Giants
The Group of Seven agrees to a global minimum corporate tax rate of at least 15% to stop big tech companies from avoiding taxes. The landmark deal also requires large multinationals to pay taxes in the countries where they make significant sales.
The Group of Seven wealthy democracies agrees to support a global minimum corporate tax rate of at least 15%. This landmark decision aims to stop multinational companies, particularly U.S.-based tech giants, from avoiding taxes by stashing their profits in low-rate countries. The agreement emerges from a meeting of G-7 finance ministers in London.
In addition to the minimum tax rate, the G-7 endorses proposals that require the world's largest companies to pay taxes in the countries where they generate significant sales, even if they lack a physical headquarters there. British Treasury chief Rishi Sunak states that this deal reforms the global tax system to make it fit for the digital age and ensures fairness.
U.S. Treasury Secretary Janet Yellen notes that the agreement provides tremendous momentum toward ending the race-to-the-bottom in corporate taxation. This G-7 endorsement builds crucial support for broader negotiations involving over 140 countries in Paris and an upcoming Group of 20 finance ministers meeting in Venice.