The G7 decision came about two weeks after the U.S. Treasury Department said it had proposed that the global minimum tax rate should be at least 15 percent.
U.S. Treasury Secretary Janet Yellen on Saturday announced that the Group of Seven (G7) industrialized nations have agreed to support new rules that will achieve a global minimum tax rate of at least 15 percent.
Calling it a "significant, unprecedented" commitment, Yellen said in a statement that the global minimum tax would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the United States and around the world.
"The global minimum tax would also help the global economy thrive, by leveling the playing field for businesses and encouraging countries to compete on positive bases," she said.
The British Treasury, meanwhile, said in a statement that the principle of at least 15 percent global minimum corporation tax operated on a country by country basis creates a more level playing field for British firms and cracks down on tax avoidance.
This government must lead the way in negotiating a 21% global minimum corporate tax rate - not push to water it down.— Rachel Reeves (@RachelReevesMP) June 6, 2021
Not only would it help our high streets thrive, but it would bring billions back to Britain for our NHS and our schools.https://t.co/34CZl8LFru
The G7 agreement came about two weeks after the U.S. Treasury Department said it had proposed that the global minimum tax rate should be at least 15 percent, noting that the final rate could go even higher. The G7 Finance Ministers' meeting took place in London on June 4-5.
In the last week, the issue of uniform taxation of multinational companies was also on the agenda of the group of the world's 20 largest economies.
In October 2021, the G20 Finance Ministers and Central Bank Governors meeting is expected to include negotiations for international levies referred to as the "digital tax".