Today, the G7 countries reached consensus on a minimum corporate tax rate at 15 per cent for large multinationals.
The G7 countries are the USA, UK, Canada, France, Germany, Italy and Japan.
The U.S (Biden administration) initiated the final suggestion in a «tax fight» between the G7 states for years. During this discussion, the U.S recently banned the digital services tax introduced by the OECD and implemented by the UK, France and Italy. The said tax would mainly hit American IT-giants.
The historical meeting between the finance ministers took place in London and was the first physical meeting since the entrance of COVID-19. Now the reach of consensus was urgent, considering the need for funding of the post-pandemic recovery.
Nevertheless, there are still several details to be negotiated. Besides, the rest of the G20 countries are still not part of the deal. The G20 are supposed to meet in Venice in July this year.
Source: NTB, CNBC: https://www.cnbc.com/2021/06/05/g7-countries-near-global-corporate-tax-deal-as-finance-ministers-meet.html
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