This weekend, the finance ministers of the world’s largest economies will meet in London, where a global minimum tax for companies is on the agenda. On Saturday, a solution was said to be very close, the news came in the afternoon:
The G7 has agreed to raise the global minimum tax to 15 percent.
“We are working to reach a fair settlement in the distribution of tax rights,” he wrote in a statement after the G7 meeting.
“After years of discussions, the G7’s finance ministers have reached a historic agreement to reform the global tax system to fit the digital age,” said Rishi Sunak, Britain’s finance minister.
Wants to stop the hunt for tax havens
The purpose of low-level taxation is to prevent large multinational corporations from moving their profits to countries with the lowest corporate taxes. The deal is that giants like Google, Amazon and Facebook, which have set up offices mostly in low-tax countries, may now be forced to pay billions of dollars more in taxes than they do today.
Saturday’s result is seen as a starting shot that will put pressure on other parts of the world to follow. In July, the G20 and central bank governors will meet in Venice, where the agreement will be more comprehensive.
– Ha Honson, an associate professor and economist at the University of Lund, says they want to agree on a minimum tax rate to avoid countries competing with taxes.
Another issue discussed this weekend is whether the world’s largest multinationals will have to pay taxes in the country where they sell their products in the future.
The G7 countries are represented by the United States, the United Kingdom, Germany, Japan, Italy, Canada and France, as well as the European Union.