G7 Agree on Minimum Global Tax Rate
Multinational companies will have to pay a minimum tax rate of 15 percent to the country of origin and the countries where their business units operate.
British Foreign Secretary Dominic Raab (center left) leads his meeting with US Secretary of State Antony Blinken (center right) ahead of the G-7 foreign ministers meeting in London, Monday (3/5/2021).
JAKARTA, KOMPAS — The G-7 group of advanced economies, namely the United States, Canada, Britain, France, Germany, Italy and Japan, have reached an agreement on the minimum tax rates for global companies. Multinational companies will have to pay a minimum tax rate of 15 percent to the country of origin and the countries where their business units operate. But a number of parties consider the tax rate still too low.
“This minimum 15 percent tax rate agreement is a historic breakthrough in global tax reform. The value is sufficient to bring about an increase in world welfare so that the economy can reach the level achieved before the Covid-19 pandemic," said United States Treasury Secretary Janet Yellen after attending a meeting of the finance ministers of the world’s seven strongest economies in London on Saturday (5/6/2020).