The deal calls for a global minimum tax of at least 15 per cent, a key element pushed by Biden as he seeks to raise more revenue for his infrastructure and clean energy plans. French Finance Minister Bruno Le Maire called it "the most important international tax agreement in a century." The French tax on tech giants prompted retaliatory tariffs under former US President Donald Trump, and France has welcomed the Biden administration's push to reach a global deal. Under the deal, countries could tax their companies' foreign earnings up to 15 per cent if they go untaxed through subsidiaries in other countries. In the US, Biden has proposed a 21 per cent minimum rate on overseas earnings of big American companies to deter them from shifting profits to tax havens.

Source: New Zealand Herald July 02, 2021 04:30 UTC