G20 finance ministers agree on global tax

The finance ministers of the G20 countries signed an agreement on global tax at the summit of the organization in Venice, Report informs, citing Politico.

The document was also approved by the representatives of 130 countries. It sets the minimum tax rate for transnational companies at 15%.

The reform was supported by the Organization for Economic Co-operation and Development (OECD) and is designed to prevent international corporations from transferring their assets abroad to evade taxes.

In their joint statement, the ministers called the agreement historic, noting that its terms were under consideration for many years. They believe that the reform will make the international tax architecture more stable and fair.

The document is yet to be approved in its final edition by the G20 Leaders at the organization's summit, which is to take place in Rome in October.

According to the estimates of the OECD, which leads the talks on taxes, the governments are losing between $100 bn and 240 bn per year due to the tax gap.

International agreements are closely linked to the internal tax agenda of the United States. President Joe Biden's administration seeks to increase the corporate tax rate to 28% from the current 21% and raise the minimum tax on foreign revenues of the American companies from 10.5% to 21%.