World leaders are set to endorse a deal on a global minimum corporate tax of 15 per cent, to be enforced in 2023.
Leaders are readying to back the Organisation for Economic Co-operation and Development (OECD)’s deal, according to draft conclusions of the G20 summit.
The documents, seen by Reuters, stated: “We call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023.”
It is understood the conclusions will be formally adopted on Sunday (October 31).
Leaders from the world’s 20 biggest economies have gathered in Rome, ahead of the UN Climate Change Conference (COP26) in Glasgow.
Some 136 countries agreed a deal on a minimum tax for corporate giants, including behemoths like Google, Amazon and Facebook. Governments hope to make it tougher for big firms to dodge paying taxes by setting up offices in low-tax jurisdictions.
“This is more than just a tax deal, it’s a reshaping of the rules of the global economy,” a senior US official told reporters.