Saturday, 21 May, 2022


G7 nations reach historic deal to tax multinationals

Business Desk |
Update: 2021-06-05 20:14:24
G7 nations reach historic deal to tax multinationals [photo collected]

The G7 group of advanced economies has reached a "historic" deal on taxing multinational companies.

Finance ministers meeting in London agreed to battle tax avoidance through measures to make companies pay in the countries where they do business.

They also agreed in principle to a global minimum corporate tax rate of 15% to avoid countries undercutting each other.

Tech giants such as Amazon and Google could be among the companies affected.

It was reported this week that an Irish subsidiary of Microsoft had paid zero corporation tax on $315bn (£222bn) profit last year because it was resident in Bermuda for tax purposes.

The deal announced on Saturday, between the US, the UK, France, Germany, Canada, Italy and Japan, plus the EU, could see billions of dollars flow to governments to pay off debts incurred during the Covid crisis.

Negotiated over many years, it will put pressure on other countries to follow suit, including at a meeting of the G20 next month.

UK Chancellor of the Exchequer Rishi Sunak said the agreement was designed to create a level playing field for global companies.

"After years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age," he said.

Source: BBC, Al Jazeera

BDST: 2015 HRS, JUN 5, 2021

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