EXPLAINER: How G20-backed corporate minimum tax would work
ABC News
Leaders of the Group of 20 countries have expressed support for a deal that makes sweeping changes in how big global companies are taxed
ROME -- Leaders at the Group of 20 summit in Rome are expressing broad support for sweeping changes in how big global companies are taxed.
The goal: deterring multinationals from stashing profits in countries where they pay little or no taxes — commonly known as tax havens.
The proposal was finalized in October among 136 countries and sent to the G-20 for a final look after complex talks overseen by the Organization for Economic Cooperation and Development. It would update a century's worth of international taxation rules to cope with changes brought by digitalization and globalization.
The most important feature: a global minimum tax of at least 15%, a key initiative pushed by U.S. President Joe Biden. “This is more than just a tax deal — it’s diplomacy reshaping our global economy and delivering for our people,” Biden tweeted from the summit on Saturday.