Arab Press

بالشعب و للشعب
Saturday, Jul 05, 2025

G7 nations close to historic deal to tax tech giants in plan that would 'change the world', says German finance minister

G7 nations close to historic deal to tax tech giants in plan that would 'change the world', says German finance minister

The plan to reform the taxation of tech firms and bring in a minimum level for business tax rates would "change the world".

The world's leading economies are on the brink of announcing a historic deal to tax the tech giants, the German finance minister has told Sky News.

Olaf Scholz said the plan to reform the taxation of tech companies and introduce a minimum level for business tax rates would "change the world", bringing in billions of pounds in tax revenue which would otherwise have been shifted to low tax countries.

The comments came as ministers from the Group of Seven (G7) industrialised economies met in London for the first such face-to-face summit since the onset of COVID-19 over a year ago.

In part because of pressure from the Biden White House and US Treasury secretary Janet Yellen, the G7 ministers are understood to be on the brink of announcing an unprecedented set of reforms.

The plan would help combat profit shifting, where companies - including tech giants and multinational brands - can shift profits to low tax jurisdictions.

The deal entails two "pillars": First, there will be special rules to change how much tax some large companies will pay, and where those taxes are paid.

Hitherto business taxes were based purely on company profits; in future a chunk of those taxes will be calculated based on sales.

The second pillar involves the creation of a global minimum corporate tax rate, designed to encourage countries not to cut their business tax rate below 15%.

Speaking on the fringes of the London meeting between the US, UK, Japanese, German, French, Italian and Canadian finance ministers, Mr Scholz said: "That we've made progress on both pillars is what we have worked on so hard.

"It looks as if we will now make it, and it will change the world.

"We've worked very hard in the last few years to make progress step by step, we discussed with many people and many experts on this question and with many other countries, but now we are at a stage where an agreement is feasible.

"This is a historic moment, and it will help us to do our job: to serve our people. It's about fairness and justice."

Chancellor Rishi Sunak at a meeting of finance ministers from across the G7 nations


Asked about the implications of a deal for the tax revenues of developed countries, which some experts calculate could be boosted by many billions as profits are shifted back from tax havens, Mr Scholz said: "This will help finance our countries.

"We will profit very much from an agreement like this. But it's also a starting point for more fairness - that's what this is what it is about."

According to others close to the negotiations, the technical talks are still ongoing, with "sherpas" from G7 nations expected to carry on discussing details through the night.

However, Mr Scholz's comments represent the clearest sign yet that the G7 is likely to seal a deal on tax avoidance on Saturday.

That deal would be highly significant since it would encourage finance ministers from other, smaller countries to sign up to the deal.

But, there are some nations - most notably Ireland - which are holding out.

With its 12.5% corporate tax rate, Ireland would be directly affected by the global minimum rate, and would have to decide whether to increase its level or to face penalties from those economies committing to the new pact.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
×