G20 Finance Ministers and Central Bank Governors Meeting Discussing introduction of corporate tax "minimum tax rate"

The G20 = Finance Ministers and Central Bank Governors' Meetings of 20 major countries were held on the night of the 7th.

Regarding the introduction of a common "minimum tax rate" for corporate tax, which is one of the focal points, Deputy Prime Minister and Finance Minister Aso said, "It is a great achievement to reiterate our commitment to the agreement by the middle of this year." We praised the fact that each country agreed to put an end to the competition to reduce corporate tax in anticipation of attracting companies.

The G20 meeting, chaired by Italy, was held online on the night of the 7th of Japan time, and was attended by Deputy Prime Minister and Finance Minister Aso and Governor Kuroda of the Bank of Japan from Japan.

Prior to this meeting, there was lively debate over the introduction of a common "minimum tax rate" for corporate tax, which was claimed by US Treasury Secretary Janet Yellen.

A group formed in about 140 countries and regions, centered on the member countries of the OECD = Organization for Economic Co-operation and Development, is discussing new taxation rules for giant IT companies that are expanding and making profits around the world. We are aiming to reach an agreement by the middle of the year regarding the level of the minimum corporate tax rate.

Regarding this, Minister Aso said at a press conference after the G20 meeting, "It is a great achievement to show our commitment to the agreement until the middle of this year," and in the competition to reduce corporate tax in anticipation of attracting companies. We evaluated that each country agreed in the direction of putting a brake on it.

In addition, the meeting agreed to extend the deadline for deferring debt repayment for another six months until the end of the year to support developing countries whose finances are deteriorating due to the effects of the new coronavirus.

They also agreed that developing countries would support the IMF = International Monetary Fund to expand its withdrawal capacity by another $ 650 billion to expand its response to the new corona.

On the other hand, the G20 statement included the phrase "to fight protectionism," and also indicated that it would cooperate in reforming the WTO (World Trade Organization).

The G20 statement states that the exchange rate "reflects the underlying fundamentals of the economy," and the Treasury recognizes that the dollar being bought is in line with the recovery of the US economy. It is explained that it is a clarification.