G7 Nations Strike Deal On Taxing Multinational Firms

June 5, 2021 Business, Politics

The United States, Britain and other large, rich nations reached a landmark deal on Saturday to squeeze more money out of multinational companies such as Amazon and Google and reduce their incentive to shift profits to low-tax offshore havens.

Hundreds of billions of dollars could flow into the coffers of governments left cash-strapped by the COVID-19 pandemic after the Group of Seven (G7) advanced economies agreed to back a minimum global corporate tax rate of at least 15%.

Facebook said it expected it would have to pay more tax, in more countries, as a result of the deal, which comes after eight years of talks that gained fresh impetus in recent months after proposals from U.S. President Joe Biden’s new administration.

Tech giants and tax havens targeted by historic G7 deal https://t.co/3CteOMBGuA

— Greg Roumeliotis (@GregRoumeliotis) June 5, 2021

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