Leaders reach 15% global tax agreement

LONDON — More than 130 countries have agreed on a tentative deal that would make sweeping changes to how big, multinational companies are taxed in order to deter them from stashing their profits in offshore havens where they pay little or no tax.

Under the agreement announced Friday, countries would enact a global minimum corporate tax of 15% on the biggest, internationally active companies.

U.S. President Joe Biden has been one of the driving forces behind the agreement as governments around the world seek to boost revenue following the COVID-19 pandemic.

“Today’s agreement represents a once-ina-generation accomplishment for economic diplomacy,” U.S. Treasury Secretary Janet Yellen said in a statement.

The agreement among 136 countries was announced by the Paris-based Organization for Cooperation and Economic Development, which hosted the talks that led to it.

The deal is an attempt to address the ways globalization and digitalization have changed the world economy. Alongside the minimum tax, it would allow countries to tax part of the earnings of companies whose activities, such as online retailing, don’t involve a physical presence.

On Thursday, Ireland announced that it would join the agreement, ditching the low-tax policy that has led companies like Google and Facebook to base their European operations there.

Developing countries have raised objections and Nigeria, Kenya, Pakistan and Sri Lanka have indicated they will not sign up.

The agreement must clear several more hurdles.

It will be taken up by the Group of 20 leaders at a summit Oct. 30-31 in Rome.