G20 says global corporate tax deal set to come into force in 2019

On Friday, G20 finance ministers recommitted to implementing a global overhaul of cross-border corporate tax rules next year, amid concerns about a tough deadline. The deadline is widely seen as very ambitious, as President Joe Biden’s administration strives to pass legislation that brings US law into line with international agreements. Last year 10 Nearly 140 countries reached an agreement in May on a minimum tax rate of 15% for multinational companies, making it harder for companies like Google, Amazon and Facebook to avoid taxes by posting profits in low-tax areas.

Previous tax treaties took years to implement because countries were reluctant to update their tax laws. “The key issue is the implementation of our political agreements. There is no turning back, we have to move forward,” French Finance Minister Le Maire told his counterparts at the meeting. “It is undoubtedly an ambitious schedule.

Years of negotiations culminated when they agreed to do so. Technical details are being worked out by the Paris-based Organization for Economic Co-operation and Development, with countries able to incorporate the new rules into their codebooks by next year. G20 finance ministers said in a joint statement after their meeting on Friday that they were committed to adopting new rules which will come into force globally in 2023.

But it is also a far-reaching and important project for international tax justice,” said Federal Finance Minister Christian Lindner. The first pillar of an agreement that makes it difficult to secure profits in the country.

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