G20 Backs Historic Deal To Overhaul The Way Multinational Firms Are Taxed

The global tax reforms backed by G20 aim to prevent countries competing to offer the lowest tax rates to attract investment, which has often resulted in multinationals paying derisory levels of tax.

G20 finance ministers on Saturday gave their backing to a historic deal to overhaul the way multinational companies are taxed, and urged hold-out countries to get on board. Some 132 countries have already signed up to a framework for international tax reform, including a minimum corporate rate of 15 percent, struck earlier this month. But the endorsement by the 19 biggest economies plus the European Union will help ensure it becomes a reality following years of negotiations. "We have achieved a historic agreement on a more stable and fairer international tax architecture," the ministers said in a final statement following two days of talks in Venice, hosted by G20 president Italy.