G7 deal on minimum global corporate tax: Reason, likely impact explained

Agreement paves way for levies on multinationals in countries where they operate, instead of just where they are headquartered.

The Group of seven (G-7) advanced economies on June 5 secured a landmark deal on taxing multinational companies as per which the minimum global tax rate would be at least 15 per cent.

The agreement by finance ministers of US, UK, Germany, France, Canada, Italy and Japan paves way for levies on multinationals in countries where they operate, instead of just where they are headquartered.

 
Here are key facts to know about the proposed global taxation system.