Venice, Italy, Jul 10 (EFE).- G20 nations have come to an agreement on a proposed global tax reform on multinationals, Germany’s finance minister Olaf Scholz said Saturday.
The minimum rate, pushed for by the United States, already has the backing of 130 countries and jurisdictions of the OECD/G20 Inclusive Framework’s 139 members.
Scholz told reporters at the meeting of G20 finance ministers in the Italian city of Venice that the representatives were on board with the measure but added that the current target of implementing the measure by 2023 was “very little time.”
The international tax reform aims to put a floor on competition over corporate income tax by introducing a universal minimum rate.
It would also re-allocate some taxation rights over multinational companies from their home countries to the markets where they operate, regardless of their physical presence there.
According to the OECD, a global minimum tax rate of 15% on multinationals could generate $150 billion in global revenues each year. EFE