The Group of 20’s finance ministers and central bank governors have secured a “historic agreement” on new tax laws for multinational corporations.
On Saturday, the G20 finance ministers concluded two days of meetings in Venice, Italy, with the adoption of a single communique.
It claims that the finance ministers support a group of 132 countries and territories’ decision to impose a minimum worldwide corporate tax rate of 15%. This is in an attempt to put an end to the worldwide race to give the lowest corporation tax rate.
The G20 finance ministers also reaffirm the group’s broad agreement on a plan to establish new cross-border taxation laws.
Lower corporate tax rates have been used by Ireland and other countries to try to attract multinational corporations. They haven’t signed on to the pact.
All states and territories that have not joined the pact are urged to do so, according to the communiqué.
It also encourages the details of the guidelines to be finalized by the next G20 conference in October.
Negotiations will continue in the hopes of achieving a final agreement by the end of October.