G7 Leaders Reach Historic Agreement on Global Corporate Tax Reform
The world's seven largest advanced economies agree on a unified approach to tax multinational companies, setting a minimum global rate of 15 percent.
The world's seven largest advanced economies reach a landmark agreement to overhaul international corporate tax rules. This historic consensus among G7 nations aims to ensure that large multinational companies pay their fair share regardless of where they operate.
A central pillar of this reform is a global minimum corporate tax rate of 15 percent. This measure targets giant tech companies and other large corporations that currently exploit loopholes to shift profits into low-tax jurisdictions, effectively ending the race to the bottom in international taxation.
The agreement also includes provisions to tax companies based on where their goods and services are sold, rather than where their headquarters are located. G7 finance ministers express hope that this framework serves as a foundation for a broader deal involving more than 130 countries at upcoming negotiations.