The G7 commits to a global corporate tax rate of at least 15%

G7 finance ministers gathered for two days in London.

REUTERS - HENRY NICHOLLS

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3 min

The G7 finance ministers pledge in favor of a minimum global taxation of 15% of multinationals.

A "

historic agreement 

", reacted the French Minister of Finance, Bruno Le Maire.

After two days of discussions in London, the participants still postpone much of the negotiations to the G20 in Venice next month.

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A rate of at least 15% applied to the profits of multinationals, regardless of where they report their profits. It is on the lowest common denominator that the members of the G7 (United Kingdom, France, Germany, Italy, Japan, United States, Canada) have agreed, they announced on Saturday, June 5 in a joint declaration, which also mentions the commitment to a better distribution of rights to tax the profits of large multinationals.

This is what Washington, one of the main proponents of reform, was asking for.

And the minimum envisaged by France, whose Minister Bruno Le Maire hails this progress as “

historic

”, just like his British counterpart Rishi Sunak, the host of the meeting.

It is indeed the first international agreement on corporate taxation in decades.

► Read also: International corporate taxation, is it possible?

The major powers of the G7 want to achieve a global reform of the corporate tax in the spirit of the work undertaken within the OECD.

It is largely aimed at large technology companies, often American, who pay derisory taxes despite profits of tens or even hundreds of billions of dollars, by being domiciled in countries where the corporate tax rate is very low, or even zero.

Paris wants to fight for the rate to be "as high as possible"

Now the ball is back to the heads of state and government.

Those of the G7 meeting next week in Cornwall, but especially those of the G20 in Venice next July who will have to agree on the final rate of corporate taxation at the global level.

France affirms that it will fight for it to be "

as high as possible

", above 15% therefore.

Because the major stake of this reform, it is for the States to find the necessary resources to continue to support their respective economies, very affected by the effects of the health crisis and more indebted than ever.

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• Taxation

• G7

• Companies