Jul 10, 2021 - Economy & Business

G20 leaders back global tax deal

Italian Economy Minister, Daniele Franco (L) and Governor of the Bank of Italy, Ignazio Visco (R) hold a press conference.
Italian Economy Minister, Daniele Franco and Governor of the Bank of Italy, Ignazio Visco hold a press conference following G20 Finance Ministers and Central Bank Governors meeting in Venice, Italy. Photo: Baris Seckin/Anadolu Agency via Getty Images

Finance ministers from the world's 20 largest economies backed a proposal on Saturday that seeks to introduce an international tax on multinational companies and sets a global minimum tax rate of 15%, Politico reports.

Why it matters: If enacted, the reform could alter who gets to tax multinational corporations and "stop multinationals from shifting profits into tax havens," Politico reports.

What they're saying: "After many years of discussions and building on the progress made last year, we have achieved a historic agreement on a more stable and fairer international tax architecture," the finance ministers from the G20 club, who met at a summit in Venice on Saturday, wrote in a statement.

  • "This is a victory for tax fairness, for social justice and for the multilateral system. But our work is not done ... I am optimistic that we will be able in that time also to reach a consensus among all European Union Member States on this crucial issue," said Paolo Gentiloni, the European commissioner for the economy, per Politico.
  • Some EU countries, such as Hungary, remain opposed to the deal.

What's next: Final approval of the deal is not expected until the G20 leaders' meeting in Rome in October, and some details still need to be worked out before then.

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