World leaders pass global corporate tax deal

Leaders from 20 of the world’s largest economies have approved a deal that means large global companies will be taxed by a minimum of 15%.

The move comes on the back of people across the world expressing concern over multinational corporations using tax loopholes via special jurisdictions.

The agreement was approved by each attendee at the G20 which is taking place in Rome.

Also on the agenda is Covid-19 and climate change, as the group of leaders meet for the first time in person since the beginning of the pandemic.

The only ones who weren’t physically present out of the 19 countries and the EU were Russia’s Vladimir Putin and China’s Xi Jinping, who opted to attend via video.

After the US officially proposed the deal, it will be officially recognised on Sunday and will be enforced by 2023.

Janet Yellen, the US Treasury secretary, has high hopes for the bill, suggesting that it will “end the damaging race to the bottom on corporate taxation”.

Paradoxically, Yellen suggested the deal would be beneficial to US companies and workers even though they would be required to pay more tax.

“This deal will remake the global economy into a more prosperous place for American business & workers. Rather than competing on our ability to offer lower rates, America will now compete on the skills of our people, our ideas & our capacity to innovate—which is a race we can win,” Yellen said.

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