G7 Finance Ministers Reach Agreement on Minimum Tax Rate for Companies of 15%

The finance ministers of the Group of Seven (G7) have reached an agreement on a minimum global corporation tax rate of 15%, according to the joint statement published following the two-day meeting in London.

British finance minister Rishi Sunak, who presides over the meeting as the representative of the country-organizer of the event, called the agreement “historic”, France Press reports.

Sunak said that the agreement had been designed to create equal conditions for global companies.

– After years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age – Sunak said, as reported by the BBC.

The finance ministers of the USA, Great Britain, France, Germany, Canada, Italy and Japan agreed at the London meeting to oblige to the principle of a minimum global corporation tax rate of 15%.

Tech giants such as Amazon and Google might be among the companies affected.

This measure could lead to an inflow of several billion dollars to the governments, helping them pay off the debts incurred during the coronavirus pandemic crisis.

The agreement will pressure other companies to follow the example, especially at the G20 meeting, scheduled for next month in Italy.

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Group of Seven

G20

HM Treasury

Rishi Sunak

corporation tax rate

minimum global corporation tax rate

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Amazon

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