G7 finance chiefs agree on global tax reforms

Finance ministers of the Group of Seven countries have agreed to commit to a global minimum corporate tax of at least 15 percent.

The G7 finance ministers gathered in London on Friday and Saturday.

A statement issued after the meeting says they have agreed to the principle of a global minimum rate that ensures multinational companies pay tax of at least 15 percent in each country where they operate.

Securing tax revenues from multinationals is hoped to help the nations recover from economic fallout caused by the coronavirus pandemic.

The ministers also agreed that part of any profit above a certain margin will be reallocated and then subjected to tax in the countries where they operate.

The rule would apply to the world's 100 largest and most profitable companies, many of which are US firms.