G7 is close to deal on taxation of world’s largest companies

G7 is close to deal on taxation of world’s largest companies

The Group of Seven top advanced economies are close to an accord on the corporate taxation of multinationals, paving the way for a global deal later in the year creating new rules for the imposition of levies on the world's largest companies.

A G7 pact could be sealed as early as Friday after progress was made among top officials in recent days “” and would be a powerful force and prerequisite for a deal in the formal negotiations taking place at the OECD in Paris and directed by the wider G20.

An OECD agreement would probably see the largest shake-up in international corporate taxation for a century, severely curtailing the ability of companies to shift profits to low tax jurisdictions and ensuring that US digital giants paid more tax in the countries where they made sales. 

Under the Biden administration, the US has been pushing hard for the G7 to reach its own consensus as a way of spurring the OECD talks so a final deal can be reached in the coming months.

The US last week scaled back its ambitions on a global minimum corporate tax rate, lowering it from 21 per cent to an effective rate of 15 per cent to increase its