G-7 Finance Chiefs Discuss Global Corporate Tax Rules

Economy Politics Lifestyle

Tokyo, Sept. 9 (Jiji Press)--Finance ministers from the Group of Seven major industrial countries held a videoconference Thursday to discuss global corporate tax rules aimed at preventing tax avoidance by multinational companies.

The participants, including Japanese Finance Minister Taro Aso, are believed to have confirmed that the countries will continue working closely to reach a final agreement on the rules at a meeting of finance ministers and central bank chiefs of the Group of 20 advanced and emerging economies in October, sources familiar with the situation said.

The envisaged new rules will call for setting the minimum corporate tax rate at 15 pct or higher to avoid competition for tax rate cuts and introducing digital taxation designed to block tax avoidance by information technology giants. G-20 finance ministers and central bank leaders broadly agreed on the rules at their meeting in July.

The United States, which has Google, Apple, Facebook and Amazon.com, the four IT giants known collectively as GAFA, has been calling for the abolition of a digital tax introduced in part of Europe.

At Thursday's virtual meeting, the G-7 finance ministers showed their unity toward reaching a final accord at the upcoming G-20 meeting, pundits said. "We now have a better chance to move for the current direction," Aso told reporters after the videoconference, suggesting that progress was made in the discussions on the taxation rules.

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