The article reports on a historic agreement reached by G7 finance ministers to revamp taxation for digital companies. The deal, which sets a 15% global corporate tax rate, aims to ensure that multinational tech giants pay their fair share of taxes in the countries where they operate.
Key points from the article include:
- The agreement is seen as a major breakthrough after years of negotiations and disagreements between countries.
- The 15% rate is considered a starting point, with some countries aiming to increase it further.
- The deal requires countries to provide for coordination to remove digital services taxes, which could be challenging given the sequencing of unilateral measures.
- Small countries that use low corporate taxes to attract investors have expressed concerns about the agreement.
- The OECD has said a final deal may not come until October, requiring countries to pass the plan through national legislatures.
Overall, the article suggests that this agreement marks an important step towards addressing tax issues related to digital companies.