End of the beginning on a global tax dealThe Group of 7 finance chiefs sealed what they called a “historic global tax agreement” at a summit meeting in Britain this weekend. The first would tax companies based on where they operate, and not just the location of their headquarters. The second would impose a 15 percent minimum global tax rate on companies — a major priority for the U.S. — which would generate more revenue from taxes on American multinationals that use offshore havens to reduce their tax bills. The location-based tax pillar would apply to companies with at least a 10 percent profit margin, which some say wouldn’t cover Amazon. The global minimum rate pillar would be most effective if applied to corporate profits broken down on a country-by-country basis, instead of pooled and averaged across different tax regimes.

Source: International New York Times June 07, 2021 11:43 UTC