The historic deal signed this weekend is intended to prevent digital companies such as Google and Facebook from playing a cat-and-mouse game with national tax authorities. G7 finance ministers have established a minimum global corporation tax rate of 15% – a rate that can ultimately be applied by all nations. Too often, minimum tax rates become the norm, and 15% is well below the level set by many developed countries. The tax deal explainedFirst stageThe proposed regime would create a new right for countries to tax the largest multinationals’ profits based on where they make their sales. Second stageProvides for a minimum tax rate that the G7 recommends should be 15%.

Source: The Guardian June 06, 2021 09:56 UTC