Pay, and where should they pay it? those were the questions at the heart of these discussions between g7 finance ministers. Today a consensus to back a global minimum rate of at least 15%. I am delighted to announce today after years of discussion g7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age but crucially to make sure it is fair so that the right companies pay the right tax in the right places. The deal is seen as a significant development. Since at least ten years ago and earlier there has been dissatisfaction that lots of companies moved their headquarters to very low taxjurisdictions. But it has been really hard to come up with a global deal on corporation tax. Some countries including the uk have already introduced their own digital services tax. There had been pressure from the us to drop them quickly as part of this deal. Asked if the uk would now do that the chancellor said the measure had always
And we are live from coventry cathedral, the uk city of culture. Street performers and artists are moving through the city to avoid mass crowds due to covid restrictions. Good afternoon. Welcome to bbc news. The chancellor rishi sunak has announced what he called a historic agreement to reform the global tax system. The agreement by the g7 group of finance ministers is set to include a global minimum rate of corporation tax. The base rate of at least 15% is seen as a starting point, but is lower than the minimum rate of 21% that had been proposed by president biden. The plans are also set to stop major multinational companies, include apple and microsoft, from paying little or no tax in countries where they make money. The uk chancellor, rishi sunak, said businesses should pay the right amount of tax in the right place. Our business correspondent katy austin reports. How much tax should multinational companies, particularly tech giants, pay, and where should they pay it? those were the
The first big event during their year as uk city of culture take place in coventry after a six month delay. Good afternoon. Welcome to bbc news. The chancellor rishi sunak has announced what he called a historic agreement to reform the global tax system. The agreement by the g7 group of finance ministers is set to include a global minimum rate of corporation tax. The base rate of at least 15% is seen as a starting point, but is lower than the minimum rate of 21% that had been proposed by president biden. The plans are also set to stop major multinational companies, include apple and microsoft, from paying little or no tax in countries where they make money. The uk chancellor, rishi sunak, said businesses should pay the right amount of tax in the right place. Many of the tech giants have welcomed the agreement. The former deputy prime minister and now facebook s vice president of global affairs, nick clegg, said the social media giant had called for reform of global tax rules and wanted
For the first time in nine months. The first big events in their year of uk city of culture take place in coventry after a six month delay. Coming up at 6:30, we ll have a round up of the day s sporting action in sportsday. Good evening. It s being hailed as a historic agreement that could see global governments make billions. The deal made today by the g7 group of leading economies could shake up the tax system for multinational companies, including big tech giants. It could include a global minimum corporate tax rate of 15% to avoid countries undercutting each other. The chancellor, rishi sunak, said that it will mean firms pay the right tax in the right places. Tech companies google and facebook have welcomed the move. Here s our business correspondent katy austin. How to stop multinational companies, particularly tech giants, avoiding tax by booking profits in low or no tax jurisdictions, that was one question at the heart of these discussions between the finance ministers of sev