Global corporate tax: G7 countries have taken a historic decision together regarding global corporate tax. The finance ministers together have agreed on a minimum tax of 15 percent.
Consent can be made at 15 percent.
Global corporate tax: After years of discussion, the G7 countries have finally reached a historic conclusion in the matter of tax. The finance ministers of the seven countries have jointly decided that they will implement the minimum global corporate tax. The minimum global corporate tax will be 15 percent. Along with this, it has also been said that in the country where business is being done, tax will have to be paid. In fact, the world’s biggest companies have been taking advantage of the opacity of rules for years. This causes huge loss of tax to the governments.
According to the report published in Reuters, Britain’s Finance Minister Rishi Sunak told the media that the finance ministers of the G7 countries have taken this decision together. The new tax system fits in with the global digital age. In the last few decades, countries have started a tradition of heavy discounts to attract corporates. This attracted investors and companies, but the exchequer has suffered a lot.
Treasury is getting empty due to Corona
The economy of the whole world has slowed down due to Corona. Government coffers have become empty which needs to be filled at the earliest. In such a situation, the G7 countries together have decided to implement the Minimum Global Corporate Tax. The G7 countries include countries such as Canada, France, Germany, Italy, Japan, the UK and the US.
Biden has fueled the issue again
In rich countries like America, companies like Google, Facebook, Amazon pay negligible tax. Recently, the Joe Biden administration has raised the issue of a minimum global corporate tax of 15 percent. This rate is higher than countries like Ireland while it is less than the minimum level of G7 countries.
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