The Group of Seven leading rich countries consented to back new rules for taxing organizations that run worldwide in a significant step towards an international arrangement that would deliver the 15% minimum rate sought by the Biden administration.
The arrangement, reached by treasury chiefs during a meeting in London on Saturday, resolves long-running stress in between the U.S. and large European economies that have at times threatened to push the worldwide tax system into chaos and stimulate a trans-Atlantic trade dispute.
Under the offer, G-7 members will back a global minimum tax rate on company revenues and a new way of sharing the incomes from taxing the worlds largest and most lucrative companies.
The G-7, which consists of Canada, France, Germany, Italy, Japan, the U.K. and the U.S., concurred that services must pay a minimum tax rate of at least 15% in each of the countries in which they operate.
“The G-7 financing ministers have actually made a considerable, unmatched dedication today that supplies incredible momentum towards accomplishing a robust global minimum tax at a rate of at least 15%,” stated Treasury Secretary Janet Yellen.