The International Group of seven Countries, known as G7, has agreed to tax the big multinational corporations at a corporate tax rate of at least 15%.
The decision was made by the G7, which is made up of finance ministers from the world’s seven richest countries, in an attempt to close a cross-border tax loophole commonly used by multinational businesses.
The members of the G7 include Canada, France, Germany, Italy, Japan, the UK, and the US.
Rishi Sunak, Britain’s Finance Minister, said, “G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age.”
Sunak stressed this point on Saturday, arguing that the deal is “fair” as it ensures “that the right companies pay the right tax in the right places.”
“Companies will no longer be in a position to dodge their tax obligations by booking their profits in the lowest-tax countries,” Scholz said.