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G20 leaders endorse global minimum corporate tax deal for 2023 start

Published 30/10/2021, 10:55
© Reuters. Italian Prime Minister Mario Draghi poses with France's President Emmanuel Macron as he arrives for the G20 leaders summit in Rome, Italy October 30, 2021. REUTERS/Guglielmo Mangiapane

ROME (Reuters) -Leaders of the world's 20 biggest economies (G20) will endorse an OECD deal on a global minimum corporate tax of 15%, draft conclusions of the two-day G20 summit showed on Saturday, with a view to have the rules in force in 2023.

"We call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023," the draft conclusions, seen by Reuters, said.

The conclusions are to be formally adopted on Sunday.

In October, 136 countries reached a deal on a minimum tax on global corporations, including internet giants like Google (NASDAQ:GOOGL) , Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT) or Apple (NASDAQ:AAPL) to make it harder for them to avoid taxation by establishing offices in low-tax jurisdictions.

© Reuters. U.S. President Joe Biden talks with Turkey's President Tayyip Erdogan and Britain's Prime Minister Boris Johnson as he attends the G20 leaders' summit in Rome, Italy October 30, 2021. REUTERS/Kevin Lamarque/Pool

U.S. Treasury Secretary Janet Yellen said the endorsement of the minimum tax would help U.S. businesses and workers, even though the deal also means that many U.S.-based companies, like the Internet giants, will be paying more tax than now.

"This deal will remake the global economy into a more prosperous place for American business and workers," Yellen said in a statement.

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