Finance ministers from the world's 20 largest economies backed a proposal on Saturday that seeks to introduce an international tax on multinational companies and sets a global minimum tax rate of 15%, Politico reports.
Why it matters: If enacted, the reform could alter who gets to tax multinational corporations and "stop multinationals from shifting profits into tax havens," Politico reports.
What they're saying: "After many years of discussions and building on the progress made last year, we have achieved a historic agreement on a more stable and fairer international tax architecture," the finance ministers from the G20 club, who met at a summit in Venice on Saturday, wrote in a statement.
- "This is a victory for tax fairness, for social justice and for the multilateral system. But our work is not done ... I am optimistic that we will be able in that time also to reach a consensus among all European Union Member States on this crucial issue," said Paolo Gentiloni, the European commissioner for the economy, per Politico.
- Some EU countries, such as Hungary, remain opposed to the deal.
What's next: Final approval of the deal is not expected until the G20 leaders' meeting in Rome in October, and some details still need to be worked out before then.