G-20 Finance Ministers Set to Endorse Global Tax Deal in Venice

Janet Yellen, U.S. Treasury secretary, reacts on the final day of the Group of Seven Finance Ministers summit in London, U.K. (Photographer: Hollie Adams/Bloomberg)

G-20 Finance Ministers Set to Endorse Global Tax Deal in Venice

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Group of 20 finance ministers are poised in their communique this week to endorse a global tax overhaul and call for finishing work on the details of the accord by October, according to people familiar with the discussions.

Finance ministers and central bankers are meeting Friday and Saturday in Venice, and they’re expected to release a statement at the gathering’s conclusion. While an endorsement of the deal became a fait accompli after all G-20 nations involved signed on to the agreement at the Organization for Economic Cooperation and Development next week, the formal blessing will be a key milestone in the yearslong talks.

The tax deal, brokered by the OECD and agreed to by 131 countries so far, proposes a minimum corporate levy of at least 15%, and new rules for dividing up the tax revenues from the world’s largest companies -- particularly U.S. tech giants. Discussions are scheduled to continue until October when G-20 leaders meet in Rome.

The negotiations could still get bogged down over disagreements such as how much tax revenue should be redistributed to developing economies, and whether countries will meet the U.S. demand to withdraw digital levies once new global rules are in place. In a related dispute, the U.S. is pressing European officials to reconsider plans to enact a new digital tax across the 27-member European Union.

At the same time, the Biden administration faces challenges in getting U.S. lawmakers to sign off on the accord, which could delay implementation.

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