Group of Seven members Canada, France, Germany, Italy, Japan, the UK, and the US agreed Saturday to support a global minimum corporate tax of at least 15% to deter multinational companies from avoiding taxes by stashing profits in low-rate countries. G-7 finance ministers meeting in London also endorsed proposals to make the world's biggest companies – including US-based tech giants – pay taxes in countries where they have a lot of sales but no physical headquarters.
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US Treasury Secretary Janet Yellen said the agreement "provides tremendous momentum" for reaching a global deal that "would end the race-to-the-bottom in corporate taxation and ensure fairness for the middle class and working people in the US and around the world."
Nations have been grappling for years with the question of how to deter companies from legally avoiding paying taxes by using accounting and legal schemes to assign their profits to subsidiaries in tax havens.
Facebook's vice-president for global affairs Nick Clegg acknowledged the deal could cost the company.
