Jul 10, 2021 - Economy

G20 leaders back global tax deal

Erin Doherty

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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G20 leaders back global tax deal

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