We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

G7 countries reach agreement to set "global minimum" tax rate for multinational corporations

2 27 0
07.06.2021

Representatives from seven of the world's wealthiest nations reached an agreement on Saturday to support a global minimum tax rate of at least 15% for multinational companies, a move aimed at curbing the use of tax havens and ending the decades-long race to the bottom on corporate taxation.

The deal struck by the U.S., Japan, Germany, France, the U.K., Italy, and Canada still faces a long road to implementation, but Saturday's development marks substantial progress toward a global accord that could allow governments to raise revenue from corporate giants notorious for shifting operations and profits overseas to avoid taxes.

"The G7 has taken significant steps this weekend to end the existing harmful dynamic, making commitments today that provide tremendous momentum towards achieving a robust global minimum tax at a rate of at least 15%," U.S. Treasury Secretary Janet Yellen said Saturday. "This effort is far from over, and we look forward to engaging closely with the G20 and members of the OECD Inclusive Framework process in the coming weeks to finalize an agreement on the global minimum corporate tax as soon as possible."

While arguing that the proposed 15% global minimum tax rate is too low, economist Gabriel Zucman hailed the G7 agreement as "a game-changer because it slashes incentives for multinational firms to book profits in tax........

© Salon


Get it on Google Play