The way forward

The pact on a global minimum corporate tax rate of at least 15% could form the basis of a worldwide deal. Here’s what you need to know

IDEA BEHIND THE TAX

Major economies are aiming to discourage multi-nationals from shifting profits — and tax revenues — to low-tax countries regardless of where their sales are made

THE FIRST OF MANY STEPS

The G7 accord feeds into a larger effort. The Organization for Economic Cooperation and Development and G20 countries aim to reach consensus on a global corporate minimum tax soon

HOW WOULD IT WORK?

The tax would apply to overseas profits. Governments could still set the local tax rate they want, but if firms pay lower rates in a another country, they could “top-up” their taxes to the minimum rate

WHAT’S NEXT?

The measures will first need to find broader agreement at a G20 summit from 9-10 July in Venice Much still needs to be ironed out like the metrics that will determine how tax will be applied