G-7 finance ministers reach pact on global minimum corporate tax

Photo by Bet_Noire/iStock via Getty Images The Group of Seven finance ministers commit to adopt a global minimum tax for "the largest and most profitable multinational enterprises" in a bid to keep huge corporations from shifting profits to the lowest tax jurisdictions. The issue is priority for U.S. Treasury Secretary Janet Yellen, as setting a global minimum corporate tax rate may help fund the Biden Administration's infrastructure plan. "We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20% of profit exceeding a 10% margin" for those enterprises, said a communique issued after the in-person G7 finance meeting in London. "We also commit to a global minimum tax of at least 15% on a country by country basis," the statement said. The finance ministers also agreed to "appropriate coordination between the application of the new international tax rules