G7 strikes 'historic' agreement over global corporate tax
G7 strikes 'historic' agreement over global corporate tax
LONDON (AFP) - Finance ministers from wealthy G7 nations on Saturday endorsed a global minimum corporate tax rate of at least 15 percent, rallying behind a US-backed plan targeting tech giants and other multinationals accused of not paying enough.
US Treasury Secretary Janet Yellen hailed the "unprecedented commitment", saying in a statement that a global minimum tax "would end the race to the bottom in corporate taxation".
Facebook even got behind the move despite the social media giant facing the prospect of having to pay more tax -- while non-governmental organizations said it did not go far enough.
Following the two-day gathering in London, the G7 said in a final communique that it will "commit to a global minimum tax of at least 15 percent on a country by country basis".
The G7 -- comprising Britain, Canada, France, Germany, Italy, Japan and the United States -- said it hoped to reach a final tax agreement at the July gathering of the expanded G20 finance ministers group.
The G7 also committed to making companies carry out mandatory reporting regarding the climate impact of their investments.
It additionally said it will continue to support "the poorest and most vulnerable countries as they address health and economic challenges associated with Covid-19".
Regarding the commitment on taxation, Britain’s Treasury noted that "the largest and most profitable multinationals will be required to pay tax in the countries where they operate -- and not just where they have their headquarters".
