London [UK]June 5 (ANI): The Group of Seven (G7) agreed on Saturday to reform the global tax system to make multinationals and technology giants like Apple and Amazon pay a higher tax contribution to countries where they do business.
At the end of a two-day meeting in London, the blog said they had committed to a minimum global tax of at least 15% on a “country by country” that would help the government recover from the impact of the covid pandemic19.
“We are also committed to achieving a global minimum tax of at least 15 percent per country. We agree on the importance of progressing in a parallel agreement on the two pillars and look forward to reaching an agreement at the July meeting. of G20 finance ministers and central bank governors, ”the G7 statement read.
UK Finance Minister Rishi Sunak described the decision as a “historic deal” to reform the global tax system in an attempt to make it fit for the global digital age.
“I am pleased to announce that today the G-7 finance ministers, after years of discussions, have reached a historic agreement to reform the global tax system to make it fit for the global digital age and ensure “I know it’s fair, crucially. That the right companies pay the right taxes in the right places,” Sunak said in a video message posted on Twitter.
In the statement, G7 also supported efforts to address the fiscal challenges arising from the globalization and digitalization of the economy and to adopt a global minimum tax.
“We are committed to reaching an equitable solution on the allocation of tax rights, with market countries granted tax rights on at least 20% of profits exceeding the 10% margin for larger and more profitable multinational companies. We will provide a proper coordination between the application of the new international tax rules and the elimination of all taxes on digital services and other similar measures relevant to all companies, ”the G7 said.
The block consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. (ANI)