G7 countries reached agreement on taxing global companies
12:00
The G7 group, which brings together the most economically developed western countries, reached a landmark agreement on Saturday on the taxation of global companies and the introduction of a minimum corporate tax rate of 15 percent.
The G7 finance ministers, who met in London on Friday and Saturday, agreed to fight tax avoidance by forcing companies to pay taxes in the countries where they operate.
"G7 finance ministers have reached a historic agreement to reform the global tax system to bring it into line with the global digital age," said UK Finance Minister Rishi Sunak, who chaired the two-day meeting.
For years, the richest countries have been struggling to agree on a way to obtain more income from large multinational corporations that, despite billions of dollars in sales, pay negligible taxes due to the fact that they have activities registered in tax havens. This week it was reported that the Irish subsidiary of Microsoft paid a zero CIT on the profit of $315 billion last year as it is resident in Bermuda for tax purposes.
(PAP)
