G7 nations reach historic deal to tax multinational corporations

A group of the world’s richest nations agree on a minimum global corporate tax rate to close cross-border tax loopholes used by some corporations.

Finance ministers from the Group of Seven (G7) rich nations reached a landmark accord on Saturday backing the creation of a global minimum corporate tax rate of at least 15 percent in an effort to close cross-border tax loopholes used by some corporations. “We … commit to a global minimum tax of at least 15 percent on a country by country basis,” the G7 said in a statement at the conclusion of their London meeting. Major economies are aiming to discourage multinationals from shifting profits – and tax revenues – to low-tax countries regardless of where their sales are made.