Photo / APThe Group of Seven wealthy democracies have agreed to support a global minimum corporate tax of at least 15 per cent to deter multinational companies from avoiding taxes by stashing profits in low-rate countries. British Treasury chief Rishi Sunak, the host, said the deal would "reform the global tax system to make it fit for the global digital age and crucially to make sure that it's fair, so that the right companies pay the right tax in the right places." International discussions on tax issues gained momentum after US President Joe Biden backed the idea of a global minimum of at least 15 per cent — and possibly higher — on corporate profits. Photo / APFacebook's vice-president for global affairs, Nick Clegg, said the deal is a big step toward increasing business certainty and raising public confidence in the global tax system but acknowledged it could cost the company. It supported awarding countries the right to tax 20 per cent or more of local profits exceeding a 10 per cent profit margin.

Source: New Zealand Herald June 05, 2021 21:45 UTC