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    G7 Nations Reach 15 percent Global Tax Deal

    Finance ministers from the Group of Seven (G7) rich nations at the G7 Summit held in Cornwall, England have reached a global tax deal. On Saturday, there was a consensus that companies will pay a uniform 15 percent tax.

    The new deal says that companies have to pay a minimum of 15 percent, regardless of the location of their headquarters. Huge corporations including Amazon, Google and more will have to pay additional taxes based on the location at which they sell their services or goods. Having a physical presence in a country is no longer the only criteria to pay taxes.

    The Organization for Economic Cooperation and Development (OECD) has been working on a global proposal from years. This new agreement by the G7 could succeed in closing several loopholes that exist as different countries have different tax rates.

    In a statement in London, the G7 said, “We…commit to a global minimum tax of at least 15 percent on a country by country basis.” They also said that this was apt for the digital age and that the right companies would pay the right taxes in the right countries. The countries that are a part of the G7 are:

    • The United States of America
    • The United Kingdom
    • Canada
    • France
    • Germany
    • Italy
    • Japan
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