G7 Nations Arrive At A Landmark Deal To Tax Tech Giants Like Google, Facebook And Amazon

In a major event, the United Kingdom (UK), United States (US), and the other nations in the Group of Seven (G7) cohort have reached a significant deal regarding taxation of multinational giants like Amazon, Google et cetera, reports Economic Times.

The move by the G7 countries to back a minimum global corporate tax rate of at least 15 per cent comes as a bid to reduce the incentive for the multinational majors to shift profits to low-tax offshore havens. The deal would lead to hundreds of billions of dollars flowing into the hands of the government.

The deal comes after eight-years-long parleys. The negotiations gained fresh momentum in the recent months after proposals in its support from President Joseph Biden's new administration in the US.

Following the deal, German Finance Minister Olaf Scholz said that it was "bad news for tax havens around the world". Echoing the sentiments, US' Treasury Secretary Janet Yellen said that the "significant, unprecedented commitment" would end what she called a race to the bottom on global taxation.

It should be noted that commenting on the development, Facebook has said that it expects it would have to pay more tax, in more countries, as a result of the deal.