LONDON, June 5 (KUNA) -- G7 countries meeting in London have reached an agreement whereby global digital companies, most of which are American, will have to pay at least 15 percent corporate tax in countries they are based in.
The reforms, which come after years of talks, will see multinational companies pay their "fair share" of tax in the countries they do business, a UK Treasury statement read.
"This is a truly historic agreement and I'm proud the G7 has shown collective leadership at this crucial time in our global economic recovery," UK Chancellor of the Exchequer Rishi Sunak said after meeting fellow G7 finance ministers.
According to the deal, "the largest and most profitable multinationals will be required to pay tax in the countries where they operate - and not just where they have their headquarters." Amongst those that could be affected are mega multinational tech firms like Amazon and Google, reported the BBC.
As a result of the deal, governments could be set to receive billions of dollars to pay off debts arising from the COVID-19 pandemic. (end) mrn.sd