The world’s leading economies are close to agreeing a set of principles that would revolutionise the taxation of multinationals after France and Germany threw their support behind a new US approach to the issue.
Talks on how to make it difficult for international companies to shift profits round the world to minimise tax have been stuck at the OECD for years, but are now progressing rapidly according to several governments.
On Monday the US set out plans for a global minimum corporation tax; on Tuesday European countries backed the proposal but made it clear this ambition of Joe Biden’s administration would need to be accompanied with a deal to enable them to tax an element of technology giants’ global profits.
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