The G20 meeting in Rome has seen the leaders of the world’s biggest economies agree to a global minimum corporate tax rate. Leaders have endorsed a 15% global minimum corporate tax rate that will be in place by 2023. This will look to prevent multinational companies from stashing profits in countries where they pay few or no taxes.
The agreement, drawn from proposals developed by the Organisation for Economic Co-operation and Development, is designed to safeguard tax revenues and offer stability to businesses that operate across national borders. Bruno Le Maire, France’s finance minister, described the agreement as “good news for all of us”, adding that it is “clearly a revolution in the international tax system.”
US treasury secretary Janet Yellen said that the deal on new international tax rules "will end the damaging race to the bottom on corporate taxation". Meanwhile, US President Joe Biden took to social media, tweeting: “Leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax.” He added: “This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.”
Read More: City AM
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