The tax deal that the world’s leading developed nations reached this weekend is the first substantive evidence of a revival of international cooperation since President Joe Biden brought the United States back to the negotiating table; However, there is still a long way to go before it is implemented.
“This is a starting point,” the French finance minister said. Bruno the mayor. “In the coming months we will struggle to ensure that the minimum corporate tax rate is as high as possible.”
The agreement aims to fill in the loopholes that multinational companies have taken advantage of to cut their taxes, ensuring that they pay more in the countries in which they operate.
The G7 endorsed a minimum global tax rate of at least 15 per cent, and agreed that countries should have the right to tax a certain percentage of the profits of the largest and most profitable multinational corporations where they are generated.
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