G7 To Seal Agreement On Global Minimum Corporate Tax Rate

G7 will soon seal an agreement on the global minimum corporate tax rate.

Gatekeepers News reports that the Group of Seven countries are close to reaching an agreement on the corporate taxation of multinationals, paving the way for a global deal later this year.

G7 might announce an agreement on Friday after progress has been made in the negotiations, according to Reuters.

Earlier, Gatekeepers News reported that the United States proposed a 15 percent minimum rate, reversing its previous call for a 21% minimum rate.

U.S got the backing of some countries like France, Germany and Italy which believe the new proposal was a good basis for sealing an international deal by July.

“The world is closer than ever before to a global minimum tax,” U.S. National Security Adviser Jake Sullivan said on May 22.

“Great to hear the positive reception to our proposal,” he said on Twitter. “This is what it looks like to lead the world to end the race to the bottom.”

Almost 140 countries intend to reach a general agreement this summer to revise rules for taxing multinational groups and big technology companies, such as Alphabet Inc (GOOGL.O) and Facebook Inc (FB.O).

When asked if Britain would concur with the U.S and accept a 15% minimum tax rate, a spokesman for Prime Minister Boris Johnson said: “Reaching an international agreement on how large digital companies are taxed is a priority, and we welcome the U.S.’s renewed commitment to reaching a solution.

“It’s crucial that any agreement ensures digital businesses pay tax in the UK that reflects their economic activities.”