G20 finance ministers’ meeting kicks off in Venice

The finance ministers of the G20 countries on Friday started their two-day talks, with the minimum global tax rate for businesses on top of the agenda.

In principle, 131 countries agreed to guarantee a minimum tax rate for companies of at least 15 percent, as well as ensuring that large corporations pay taxes where they make their sales.

However, EU members Ireland, Hungary, and Estonia were not on board so far.

German Finance Minister, Olaf Scholz, had described the agreement as “colossal progress” in tackling tax avoidance practices.

The minimum tax aims to prevent international corporations from shifting profits around the globe in order to pay as little tax as possible.

This especially concerns large digital companies that have been criticized for paying little taxes.

The reform is to come into force in 2023, although agreements on the EU and national levels would be necessary for this.

Other topics on the agenda of the G20 ministers include the economic recovery after the coronavirus crisis, climate policies, and fair distribution of COVID-19 vaccines to developing and emerging countries.