EXPLAINER: Deterring tax avoidance by global companies

One hundred and thirty-one countries have agreed on a  15%  global minimum tax on big, multinational corporations

Negotiators from 131 countries have agreed on a major overhaul of how the world’s biggest multinational companies are taxed. It's an effort to deter complex international avoidance schemes that have cost governments billions in revenue. The sweeping proposals are meant to better cope with a world where globalization and an increasingly digital economy mean profits can move easily from one jurisdiction to another. The agreement sealed last week in global talks in Paris is up for discussion Friday and Saturday among the Group of 20 finance ministers meeting in Venice. The key feature of the complex package is a global minimum corporate tax of at least 15%, following the broad outlines of a proposal from U.S. President Joe Biden. While the tax deal is complex in its details, the idea behind the minimum tax is simple: If a multinational company escapes taxation abroad, it would have to pay the minimum at home.