G7 leaders commit to 'at least 15%' global corporate tax rate

Measure is meant to reduce competition between countries, raise revenue.

Updated: June 5, 2021 - 6:22pm

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The G7—the group of wealthy leading democracies responsible for setting much of the global policy agenda—on Friday announced its commitment to a joint minimum corporate tax rate, a measure hoped to tamp down competition between countries and drive up revenue across the board.

The G7 Finance Ministers said in a report on Friday that they had committed to "a global minimum tax of at least 15% on a country by country basis," part of the group's plan for "a safe and prosperous future for all."

The group said it also supports efforts by the larger G20 group, as well as the Organization for Economic Cooperation and Development, to "address the tax challenges arising from globalisation and the digitalisation of the economy and to adopt a global minimum tax."

The proposal was part of "concrete actions" to which the countries agreed after meetings in London, with the package of policies meant to "address today's historic challenges … as part of our renewed and urgent effort towards deeper multilateral economic cooperation."