G7 finance ministers agreed to address the tax challenges raised by the digital economy and push ahead with plans for a minimum corporate tax level, a draft of the chair’s summary seen by Reuters said on Thursday.
“Ministers agreed that a minimum level of effective taxation, such as for example the U.S. GILTI regime, would contribute to ensuring that companies pay their fair share of tax,” the document said. The U.S.’s global intangible low-taxed income regime overseas aims to subject overseas intangible income to 10.5 per cent to discourage companies from shifting profits abroad instead of the nominal U.S. corporate tax rate under the Trump tax cuts of 21 per cent.
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