Monday, 18 October 2021 02:28 GMT

G20 finance ministers approve plan on multinational corporations' profits

(MENAFN)The G20 finance ministers approved a historic plan that is going to get multinational corporations' profits reallocated and a global minimum tax applied.

Furthermore, the deal that was reached in July at the G7 summit in London and pointed at opposing tax evasion, recognized a minimum global corporate tax rate of 15 percent.

A statement released after the fourth meeting of G20 Finance Ministers and Central Bank Governors in Washington showed that "Membership endorsed the final political agreement to address the tax challenges arising from the digitalization of the economy and establish a more stable and fairer international tax system."

The 136 countries and jurisdictions approved to join an agreement to implement a two-pillar global tax reform plan by 2023, according to the Organization for Economic Co-operation and Development (OECD).

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