All G20 members support a plan to introduce a global minimum tax rate to prevent companies from shifting profits. This was stated by German Finance Minister Olaf Schulz at the G20 summit in Venice.
It was previously doubtful whether members such as Russia and China would agree, but Schulz’s comments make it appear that way. The G20 is a grouping of nineteen major industrialized nations and the European Union. The G20 countries account for about 80 percent of world trade.
Earlier, the G7 countries reached a preliminary agreement. In that landmark deal, G7 finance ministers agreed to target a minimum global corporate tax rate of at least 15 percent. Furthermore, additional taxes may be levied on the profits of large corporations in the countries in which they are registered.
The plan, agreed by the G7 nations of France, Italy, Japan, Canada, Germany, the United Kingdom and the United States, has already won the support of 130 of the 139 countries linked to the Organization for Economic Cooperation and Development. (OECD) discussed plans. The Netherlands was among those signatories. Outgoing Finance Minister Wopke Hoekstra is present at the G20 summit, although the Netherlands as a country is not an official member.
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