G7 countries agree on a global minimum tax for multinational corporations

The finance ministers of the G7 countries meeting in London, They came to an agreement Commit to a global tax of at least 15 percent for multinational companies operating in those countries, regardless of where they are based. Rishi Sunak, British Finance Minister, New wire As a “historic agreement to reform the global tax system to adapt it to the global digital age”. Sunak explained that the tax will affect companies with a profit margin of more than 10%.

???? In the @G7 In London today, my financial counterparts and I reached a landmark agreement on global tax reform that would require the largest multinational tech giants to pay their fair share of tax in the UK.

???? The thread below explains exactly what this means. #G7UK pic.twitter.com/HdcK1HuM91

– Rishi Sunak June 5, 2021

The deal could particularly affect big tech companies like Amazon and Google, and could bring governments billions of dollars to subsidize the huge costs of the coronavirus pandemic. The G7 countries are the US, UK, France, Germany, Canada, Italy and Japan, and it now remains to be seen whether other countries will agree to do the same. And the agreement can be extended to include the countries of the Group of Twenty, which will meet in July in Italy, but according to The New York Times Possible extension of the agreement he will not come Before the next meeting, on time in October.

The agreement is based on two principles: the first is to prevent countries from undertaking a kind of “race to the bottom” on taxes in order to entice companies to operate on their soil. The second expects that some companies are forbidden to quit – simplify a little the question Paying taxes in certain countries in which they claim their profits, but without paying them at the level considered appropriate where they sell their products or services

The agreement comes after years of intense negotiations and, among other things, could ease some of the tensions that existed in particular between Europe and the United States on this issue.