G-7 countries consented to US’s proposal to raise minimum corporate tax to 15% for companies operating globally.
- The deal could bring harmony to prolonged pressure existing between US and big European economies that have previously thrown the international tax system into conflict.
- There shall be a global minimal tax rate on company profits that will be shared from taxing most successful firms.
- A minimum of 15% tax rate will be paid by companies for every country they operate in.
- 20 leading economies including China and India must back the deal before the new rules can be used worldwide.
- 135 other nations who have been consulting must also agree to the rule.
Agreed rate has to conform to requirements of small and big nations, developed and developing
SPY is declining 0.20% on premarket, DAX is gaining 0.014% as the dollar gains
EURUSD is down 0.06%
Source: Wall Street Journal
