130 Nations Back Deal On Global Minimum Corporate Tax Rate

130 Nations Back Deal On Global Minimum Corporate Tax Rate

FRANKFURT, Germany (AP) — Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates.

The agreement announced by the Organization for Economic Cooperation and Development Thursday also provides for taxing the largest global companies in countries where they earn profits through online businesses but may have no physical presence.

The agreement followed a proposal from U.S. President Joe Biden for at least a 15% rate, an initiative that propelled the talks toward meeting a deadline for a deal by the middle of this year. The deal now will be discussed by the Group of 20 countries at meetings later this year in hopes of finishing the details in October and implementing the agreement in 2023.