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G-20 endorses global corporate minimum tax: What it means for business

G-20 endorses global corporate minimum tax: What it means for business

Leaders of the world's biggest economies on Saturday endorsed a global minimum tax on corporations, a linchpin of new international tax rules aimed at blunting the edge of fiscal paradises amid skyrocketing profits of some multinational businesses.

The endorsement aims to deter multinationals from stashing profits in countries where they pay little or no taxes--commonly known as tax havens.

The proposal was finalized in October among 136 countries and sent to the G-20 for a final look after complex talks overseen by the Organization for Economic Cooperation and Development. It would update a century's worth of international taxation rules to cope with changes brought by digitalization and globalization.

The most important feature: a global minimum tax of at least 15%, a key initiative pushed by U.S. President Joe Biden. “This is more than just a tax deal — it’s diplomacy reshaping our global economy and delivering for our people,” Biden tweeted from the summit on Saturday.

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