Sun. May 22nd, 2022

Twenty of the world’s leading economies endorsed a global minimum tax rate Saturday in Rome during the first in-person session of the Group of 20 (G20) summit since the start of the pandemic.

(Photo Courtesy: The Guardian)

“We reached a historic agreement for a fairer and more equitable tax system,” Italian Prime Minister Mario Draghi said in remarks opening the summit’s first session.

The world’s developed nations plan to impose a 15-percent  global minimum corporate tax rate from 2023 under the agreement to prevent large companies from shifting profits to other countries to avoid paying taxes. Earlier this month, 136 countries and jurisdictions representing more than 90% of global gross domestic product agreed to the landmark deal.

The endorsement Saturday represented diplomatic victory for President Joe Biden’s plan to overhaul the global tax system with the minimum tax on corporate earnings.The new corporate tax rule will be formalized during a final communique Sunday when the summit ends.

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