Corporate Tax

G7 goals to make additional progress on international corporate tax reform

Briton Rishi Sunak said he asked his G7 colleagues during a virtual meeting to make further technical progress on reforms.

More than 130 countries agreed this summer to develop new rules for corporate taxation, to introduce a tax rate of at least 15% and to lower national taxes on digital services in favor of the new taxation laws.

Diplomats are now pushing for an agreement on the technical parameters of the reform at the next Group of 20 summit in October.

“I said the G7 must unite to take a leadership role to seek an effective deal in October,” Japanese Finance Minister Taro Aso told reporters.

Sunak said on Twitter that he had also urged the G7 to support vulnerable countries through the International Monetary Fund’s special drawing rights in the run-up to talks between finance ministers and central bankers in October.

A G7 source said Thursday’s meeting also discussed how to deal with the new Taliban government in Afghanistan.

“We do not want a humanitarian catastrophe in Afghanistan. There must be no famine in Afghanistan,” said the source on condition of anonymity.

Britain holds the rotating presidency of the G7, which also includes Canada, France, Germany, Italy, Japan and the United States.

(Reporting by William Schomberg in LONDON, Tetsushi Kajimoto in TOKYO editing by David Milliken)

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