Business

G7 nations agree on minimum 15% global corporate tax

Canada, France, Germany, Italy, Japan, UK, US finance ministers of one mind after years of discussions

Updated 5 years ago · Published on 06 Jun 2021 8:00PM

G7 nations agree on minimum 15% global corporate tax
A G7 ministerial meeting in London sees officials agreeing on principles for a two-pillar solution to tackle tax challenges stemming from an increasingly globalised and digitalised economy. – Pixabay pic, June 6, 2021

ISTANBUL – The finance ministers of G7 countries yesterday agreed on a global minimum corporate tax of 15% for multinational corporations in each country where they operate.

“Following years of discussions, the finance ministers agreed to reforms that will see multinationals paying their fair share of tax in the countries where they do business,” reported the Anadolu news agency, quoting a press release issued on the United Kingdom government’s official website. 

The decision between Canada, France, Germany, Italy, Japan, the UK and the United States follows a ministerial meeting in London, where officials from these nations agreed on principles for a two-pillar solution to tackle tax challenges stemming from an increasingly globalised and digitalised economy.

“Under Pillar 1 of this historic agreement, 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.

“Under Pillar 2, the G7 also agreed to the principle of at least 15% global corporate tax, operated on a country-by-country basis.” – Bernama, June 6, 2021

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