Historic G7 Agreement to Commit to a 15% Corporate Tax Rate

HISTORIC G7 agreement to commit to a 15% corporate tax rate. The world’s most developed economies, gathered at the G7, reached a “historic” agreement in London on Saturday, June 5, on the reform of the global tax system, announced the Chancellor of the Exchequer, Rishi Sunak. The G7 ministers which include the United States, the United Kingdom, Germany, France, Canada, Italy and Japan – agreed to commit to at least a 15% minimum corporate rate.

The deal will require multinational tech giants to make their fiscal contribution, Sunak said in a statement posted on his Twitter account. Global companies such as Amazon, Google and Facebook will be the most affected, since now they can legally tax in a country with advantageous tax conditions the business they generate in other countries. With this change, rich countries seek to avoid a “race to the bottom” in fiscal policies.

As reported by 20 Minutos, the pact will be discussed at the meeting of G20 finance ministers – developed and emerging countries – and central bank governors to be held in July in Venice. “I am delighted to announce that today, after years of discussions, the G7 finance ministers have reached a historic agreement to reform the global tax system,” Sunak said at the end of the meeting, held at the Lancaster House palace, in the centre of the British capital. The pact is designed to adapt it to the “global digital age” and, “what is crucial, to ensure that it is fair, so that the right companies, the tech giant, pay the right tax in the right place and that is a price huge for the British taxpayer, “added the head of Economy.