G7 approved global corporate tax | News

The G7 finance ministers will meet in London this weekend.

On the agenda was the question of a long-running debate about how large global giants should be forced to pay more taxes.

On Saturday, the news came that the G7 nations: the USA, Great Britain, France, Germany, Italy and Japan have agreed to an income tax of at least 15 percent for companies operating across many national borders, he writes. BBC.

Because as it now appears, companies can start local businesses in low-tax countries and also declare their income and thus avoid paying taxes in countries with large operations.

“Years of Discussions”

Tech giants like Amazon and Google are examples of companies that may have to increase their tax payments.

The UK Chancellor of the Exchequer says the idea of ​​the agreement is to create a level-difference game plan for global companies.

“After years of discussions, the G7 finance ministers have reached a historic agreement to reform the global tax system and adapt it to the digital age,” said Rishi Sunak.

The G7 countries are now hoping the agreement can be extended to more countries – a G20 meeting will be organized as early as next week.

With global minimum taxes in place, the G7 nations hope to counter companies that undermine each other by finding ways to pay low taxes. It is also hoped that the tax will help the giant corporations more to pay taxes in the countries where they make their money.