G7 countries reach agreement to tax multinational companies

G7 finance ministers reached a historic agreement on Saturday to reform global taxation on multinational companies such as Google, Facebook, Apple and Amazon.

The United States, Britain and other leading nations reached a landmark deal on Saturday to pursue higher global taxation on multinational businesses such as Google, Facebook, Apple and Amazon. In a move that could raise hundreds of billions of dollars to help governments cope with the aftermath of Covid-19, the Group of Seven (G7) large advanced economies agreed to back a minimum global corporate tax rate of at least 15 per cent. Companies will also have to pay more tax in the countries where they make sales. "G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age," British finance minister Rishi Sunak said after chairing a two-day meeting in London.