The G7 group of the world’s most advanced economies has reached a historic deal on taxing multinational companies.
Following two days of talks in London with G7 finance ministers, Chancellor Rishi Sunak announced they had signed up to having a corporation tax rate of at least 15%.
Changes will also be made to ensure major corporations, especially those with a strong online presence, will pay taxes in the countries where they operate and not only where they have headquarters.
The new policy is thought to be aimed at the likes of tech giants Amazon and Microsoft.
The Chancellor said: “I am delighted to announce that today, after years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system.
“To make it fit for the global digital age, but crucially to make sure that it is fair so that the right companies pay the right tax in the right places and that’s a huge prize for British taxpayers.”
A Treasury spokeswoman said: “Under pillar one of this historic agreement, the largest and most profitable multinationals will be required to pay tax in the countries where they operate – and not just where they have their headquarters.
Labour said it regretted that the G7 did not push for a higher base rate after US president Joe Biden had initially called for a 21% minimum, which the party estimated would have raised an additional £131 million for public services.
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