Categories: International

G7 deal on Minimum Global Corporate Tax

Group of Seven (G7) advanced economies signed a landmark deal on taxing multinational companies. As per the deal, the minimum global tax rate would be at least 15 per cent. The agreement was signed by finance ministers of the United Kingdom, United States, Germany, Canada, France, Italy and Japan. It opens the way for levies on multinational companies in countries where they operate rather than just where they are headquartered.

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The old system of global taxation was being criticized over the years as it allowed big companies to save billions of dollars in tax bills by shifting their jurisdictions. Major digital companies were making money in multiple countries and paying taxes only in their home country. Thus, this proposal was made which would impose an additional tax on several multinational companies and technology giants like Facebook, Amazon and Google to pay taxes to countries based on where their goods or services are sold irrespective of their physical presence there. The deal seeks to modernize the century-old international tax code.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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