The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax of at least 15% in order 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 U.S.-based tech giants — pay taxes in countries where they have lots of sales but no physical headquarters.
U.S. Treasury Secretary Janet Yellen, who led U.S. negotiations at the London meetings, said the agreement "provides tremendous momentum" towards 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 U.S. and around the world."
In a press conference on Saturday from London, she said members of the G-7 agreed "the post-pandemic world must be fairer, especially with regard to global taxation."
"I think we will end up with a tax system that is much fairer," Yellen said.
She said details remain that "need to be worked out" and they will be negotiated in upcoming meetings of the larger Group of 20. She said she believes they will reach a preliminary agreement with the larger group in July with details to be finalized in the fall.