The G20 Finance Minister on July 10 approved a global company tax at least 15 percent which will be imposed on multinational companies (MNCs) with the aim of ending the HOH tax.
In the two-day virtual meeting headquartered from Venice (Italy), this group also supports a broad agreement plan that introduces new rules for cross-border business taxation, Ani reported.
The minimum rate of 15 percent comes from ratification of 132 countries and regions, who want to “end the global competition to offer the lowest corporate tax”, Ani quoted NHK World.
The details and negotiations of rules will likely be completed during the next G20 meeting scheduled for October 2021.
Meanwhile, Ireland is among countries that have not joined the agreement. The island country tries to seduce MNCs to the land at a lower corporate tax rate.
The G20 consists mainly of organizational members for economic cooperation and development (OECD) – Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, Britain, US, and EU. Spain is a permanent guest.
The second day the meeting focused on policies for recovery, sustainable finance and international taxation, the Ministry of Finance said in a tweet.