The G20 reached a historic agreement on tax reform, which will set the world’s lowest tax rate for multinational companies

The G20 finance ministers and central bank governors concluded a two-day meeting in Venice, Italy on the 10th. Representatives of various countries discussed issues such as global economy and health, promoting economic recovery, and transitioning to a green and sustainable economy and society, and agreed to continue to promote global tax reforms in order to set the global minimum tax rate for multinational companies.

Caption: On July 9, Daniele Franco (second from left), Minister of Economy and Finance of Italy, the rotating chairman of the Group of Twenty, attended the meeting of G20 finance ministers and central bank governors in Venice. Xinhua News Agency

This is the third meeting of finance ministers and central bank governors held by the G20 this year, and it is also the first face-to-face meeting held since the outbreak of the new crown epidemic. The communiqu issued after the meeting stated that the participants reached a historic agreement on a more stable and fairer international tax structure. Franco, Minister of Economy and Finance of Italy, the rotating chairman of the Group of Twenty, said at a press conference held after the meeting that the participants expressed support for the key elements of the two pillars of the international tax structure, namely the profit distribution of multinational enterprises and the implementation of effective The world’s lowest corporate tax rate and the consensus reached by various countries will help stabilize the international tax system in the coming years.

Finance ministers and central bank governors believe that since the last meeting in April, the economic prospects of many countries have improved, but the economic recovery is still uneven. The spread of the mutant new coronavirus and the uneven pace of vaccination in various countries have caused the economy to face downside risks. Countries have expressed that they will bring the new crown epidemic under control as soon as possible in all countries, believing that the new crown vaccine should be a global public product, and call on the public and private sectors to resolve related gaps and equitably share safe, effective and affordable vaccines on a global scale.

Participants said that countries will use all possible policy measures within the necessary long period of time to mitigate the negative impact of the new crown epidemic. Countries will continue to support economic recovery, avoid premature termination of supportive policies, and at the same time fulfill the responsibilities of central banks to maintain financial stability And financial long-term sustainability.

Participants believed that climate risk poses a specific threat to growth and prosperity, and also threatens global financial stability. The response to climate change remains an urgent priority, and closer international cooperation should be carried out for this purpose.

Chen Zhanjie

Editor: Zhao Juling