On 5 June 2021, the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) agreed on supporting an international global tax reform agreement for multinational companies, creating new guidelines for corporations worldwide once a global deal is established at the end of 2021.
A face-to-face meeting was held in London on 4 and 5 June 2021 to help negotiate key elements of the deal. Now that an informal agreement is reached, the G7 leaders can subsequently officially sign it during the G7 Summit, scheduled to be held in Carbis Bay (Cornwall) from 11 to 13 June 2021.
Highlights of the agreement are:
- counterparts agree to reforms which will see multinationals paying tax in the countries where they do business; and
- a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate.
More information can be found on the website of the UK government and on the OECD website. Further developments will be reported as they occur.