G20 Approved Global Corporate Tax of 15%

G20 Finance Ministers approved a tax reform for multinationals that aims to put an end to tax havens by introducing a global corporate tax rate of at 15 per cent.

The G20 finance chiefs wrapped up two days of talks in the Italian city of Venice with the adoption of a joint communique, reported NHK World.

The G20 Finance Ministers also endorse the group's broad agreement on a plan to introduce new rules for taxing cross-border businesses.

Ireland and other countries have tried to attract multinationals with lower corporate tax rates. They have not joined the agreement, reported NHK World.

It said that the finance chiefs endorsed the action of a group of 132 countries and territories to set a minimum global corporate tax at 15 per cent. That is in a bid to end global competition to offer the lowest corporate tax.

And it also encourages finalizing the details of the rules by the next G20 meeting scheduled for October. Negotiations will continue with the goal of reaching a final deal by October, reported NHK World.

The group is mainly made up of member states of the Organization for Economic Cooperation and Development, or OECD.

The G20 is made up of Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the UK, the US, and the EU. Spain is also invited as a permanent guest.