G7 Support for OECD’s proposal on a Global Tax Reform – Pillar I and II

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The G7 has agreed to back an international agreement on global tax reforms aimed at ending the reign of tax havens and have big international companies start paying their fair share of taxes.

Under Pillar One of the reform, multinationals will be required to pay tax in the countries where they sell there products – and not just where they have their headquarters. The rules would apply to largest global firms with at least a 10% profit margin – and would see 20% of profit above the 10% margin reallocated and taxed in market countries. Under Pillar Two, a global minimum tax of 15% will be applied on corporate income on a country by country basis, creating a more level playing field.

 – The G7 comprises of US, UK, Canada, France, Germany, Italy and Japan. EU and the heads of the IMF, World Bank Group, OECD and FSB –
G7 FMCBGs_communique_-_5_June