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G20 leaders endorse global minimum corporate tax deal

Reuters | | Updated on: Oct 30, 2021

G20 state leaders pose for a family photo session at the start of the G20 summit in Rome, Italy, October 30, 2021. | Photo Credit: YARA NARDI

New rules set to come into effect in 2023

Leaders of the world’s 20 biggest economies (G20) will endorse an OECD deal on a global minimum corporate tax of 15 per cent, draft conclusions of the two-day G20summit showed on Saturday, with a view to have the rules in force in 2023.

“We call on the OECD-G20 Inclusive Framework on Base Erosion and Profit Shifting to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023,” the draft conclusions, seen by Reuters , said.

The conclusions are to be formally adopted on Sunday.

A big deal

In October, 136 countries reached a deal on a minimum tax on global corporations, including internet giants like Google, Amazon, Facebook, Microsoft and Apple to make it harder for them to avoid taxation by establishing offices in low-tax jurisdictions.

“This is more than just a tax deal, it's a reshaping of the rules of the global economy,” a senior US official told reporters.

Published on October 30, 2021
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