Finance ministers from the world's 20 largest
economies backed a proposal on Saturday that seeks to introduce an
international tax on multinational companies and sets a global minimum tax rate
of 15%, Politico reports.
Why it matters: If enacted, the reform could
alter who gets to tax multinational corporations and "stop multinationals
from shifting profits into tax
havens," Politico reports.
What they're saying: "After many years of
discussions and building on the progress made last year, we have achieved a
historic agreement on a more stable and fairer international tax
architecture," the finance ministers from the G20 club, who met at a
summit in Venice on Saturday, wrote in a statement.
"This is a victory for tax fairness, for social
justice, and for the multilateral system. But our work is not done ... I am
optimistic that we will be able in that time also to reach a consensus among
all European Union Member States on this crucial issue," said Paolo
Gentiloni, the European commissioner for the economy, per Politico.
Some EU countries, such as Hungary, remain opposed to the
deal.
What's next: Final approval of the deal is not expected
until the G20 leaders meeting in Rome in October, and some details still need
to be worked out before then.
