G20 signs off on tax crackdown, warns on virus variants

Finance chiefs of the G20 large economies endorsed a landmark move to stop multinationals from shifting profits to low-tax havens at talks on Saturday. They will also warn that coronavirus variants threaten the global economic recovery.

The pact would establish a global minimum corporate tax of at least 15% to deter multinationals from shopping around for the lowest tax rate. It would also shift the way that highly profitable multinationals such as Amazon and Google are taxed, basing it partly on where they sell products and services rather than on the location of their headquarters.

Beyond the tax agreement, the G20 will address concerns that the rise of the fast-spreading Delta coronavirus variant, combined with unequal access to vaccines, poses risks to global economic recovery.

Source(s): Reuters