Finance ministers from the Group of 20 major economies on Wednesday endorsed “the final political agreement” to revamp international corporate taxation, ensuring that multinational firms pay a fair share of tax around the world.
The G20 ministers called for swift development of “the model rules and multilateral instruments” to ensure that the new rules will come into effect at global level in 2023, according to the communique on Thursday. It was announced that a major reform of the international tax system has been agreed by 136 countries and jurisdictions representing more than 90 per cent of global gross domestic product.
“It is a far-reaching agreement which ensures our international tax system is fit for purpose in a digitalised and globalised world economy,’’ said OECD Secretary-General Mathias Cormann.