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G20 Leaders Endorse OECD Deal On Global Minimum Tax Rates

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EDITOR'S NOTE: The countries with the largest economies in the world gathered last week at the G20 Summit in Rome, Italy, and one of the main takeaways is that they agreed to establish a worldwide minimum 15% tax on all corporations. The idea is that this will give the world’s largest companies (Google, Apple, Amazon, etc.) less incentive to establish offices in low-tax jurisdictions to avoid taxes in their home countries. This deal was pushed by the U.S., and after the agreement, Treasury Secretary Janet Yellen released a statement saying, “This deal will remake the global economy into a more prosperous place for American business and workers," per Reuters. 

ROME, Oct 30 (Reuters) - Leaders of the world's 20 biggest economies (G20) will endorse an OECD deal on a global minimum corporate tax of 15%, draft conclusions of the two-day G20 summit showed on Saturday, with a view to have the rules in force in 2023.

"We call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023," the draft conclusions, seen by Reuters, said.

The conclusions are to be formally adopted on Sunday.

In October, 136 countries reached a deal on a minimum tax on global corporations, including internet giants like Google (GOOGL.O) , Amazon (AMZN.O), Facebook (FB.O), Microsoft (MSFT.O) or Apple (AAPL.O) to make it harder for them to avoid taxation by establishing offices in low-tax jurisdictions. read more

U.S. Treasury Secretary Janet Yellen said the endorsement of the minimum tax would help U.S. businesses and workers, even though the deal also means that many U.S.-based companies, like the Internet giants, will be paying more tax than now.

"This deal will remake the global economy into a more prosperous place for American business and workers," Yellen said in a statement.

Reporting by Jan Strupczewski, Crispian Balmer, Andrea Shalal and Jason Lange, editing by Elizabeth Piper
 
Originally posted on Reuters.

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