G20 agrees to continue planning global tax reform


Finance officials from the Group of 20 major economies (G20) said they had reached an agreement on how to come up with a “more stable and fairer international tax structure”.

From the agreement just reached, finance officials expect the leaders of the G20 countries to approve the tax reform plan at the Summit in October.

This is the content emphasized in the statement of the G20 financial officials meeting on July 10. The G20 is a forum for governments and Central Bank Governors from 20 major economies around the world.

During this meeting between the Finance Ministers and Central Bank Governors of the G20 members, the parties agreed on the components of the tax reform plan, including the redistribution of profits of the companies. multinational company and introduced a global minimum tax rate after “years of discussion and building on the progress made last year”.

From the agreement just reached, finance officials expect the leaders of the G20 countries to approve the tax reform plan at the Summit in October.

According to Reuters, the agreement just reached will establish a global minimum corporate tax rate of 15% to prevent multinational companies from looking for places to apply the lowest tax rates. The deal will also change the way technology giants like Amazon and Alphabet are taxed, based in part on where these companies sell their products and services, rather than where they are charged. they have their headquarters.

Earlier, Reuters news agency reported that German Finance Minister Olaf Scholz confirmed that all G20 economies were participating in the agreement. Meanwhile, US Treasury Secretary Janet Yellen said some smaller countries were still opposed to the deal, including low-tax countries like Ireland and Hungary, but that they would be encouraged to join. next October.

An agreement on global tax reform will be finalized very soon, Finance Minister Olaf Scholz told CNBC, adding that the reforms could come into effect in 2023.

“Now we’re really on the road [đạt được một thỏa thuận]. We will reach an agreement at the G20 when the 20 member countries agree on an idea to introduce a global minimum corporate tax rate on an international scale.” German Finance Minister emphasized. “This is a process that will soon be over.”

The agreement reached by G20 finance officials came after 130 countries and territories agreed last week to implement the global minimum corporate tax rate that the G7 proposed in June. Accordingly, MNCs could be forced to pay a minimum tax rate of 15% wherever they operate, rather than fulfilling most of their tax obligations in the country in which they are headquartered – something that previously helped them move profits to countries with very low tax rates or other accounting preferences.