The G20 Finance Ministers on July 10 approved a global corporate tax of at least 15 percent to be imposed on multinational companies (MNCs) with an aim to end tax havens.
In a two-day virtual meet headquartered from Venice (Italy), the Group also endorsed a broad agreement plan introducing new rules for taxation of cross-border businesses, ANI reported.
The 15 percent minimum rate comes from endorsement of 132 countries and territories, who want to “end global competition to offer lowest corporate taxes”, ANI quoted NHK World.
Details and negotiations of the rules are likely to be finalised during the next G20 meet scheduled in October 2021.
Meanwhile, Ireland is among countries that have not joined the agreement. The island nation is trying to woo MNCs to its soil with lower corporate tax rates.
The G20 mainly consists of members of the Organization for Economic Cooperation and Development (OECD) – Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the UK, the US, and the EU. Spain is a permanent guest.
Day two of the meet was focused on policies for recovery, sustainable finance and International Taxation, the Finance Ministry said in a tweet.