G20 nations finance leaders have supported an international move that aims at stopping the multinational companies from shifting their huge profits to low-tax havens in the world. G20 leaders also forewarned the world of further spread of coronavirus variants which pose threat to global economic revival.
They also acknowledged the need to ensure fair access to vaccines in poorer countries. But a draft communique to be rubber-stamped at the meeting in the Italian city of Venice did not contain specific new proposals on how to do that.
The tax deal was set to be the biggest fresh policy initiative emerging from their talks. It caps eight years of wrangling over the tax issue and the aim is for national leaders to give it a final blessing at an October G20 summit in Rome.
The pact would establish a global minimum corporate tax of at least 15% to deter multinationals from shopping around for the lowest tax rate. It would also shift the way that highly profitable multinationals such as Amazon and Google are taxed, basing it partly on where they sell products and services, rather than on the location of their headquarters.