Factbox-G7 agreements on tax, climate and recovery



© Reuters. U.S. Treasury Secretary, Janet Yellen, left, and Eurogroup President Paschal Donohoe share a light moment as finance ministers from across the G7 nations meet at Lancaster House in London, Britain June 5, 2021 ahead of the G7 leaders’ summit. Alberto Pezz

LONDON (Reuters) – The Group of Seven rich nations agreed on Saturday to commit to a global minimum corporate tax of at least 15% on a country by country basis. Below are the details of the agreement, according to the wording of a final communique seen by Reuters:

ON A MINIMUM CORPORATE TAX:

We also commit to a global minimum tax of at least 15% on a country by country basis. We agree on the importance of progressing agreement in parallel on both Pillars and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors.

We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20% of profit exceeding a 10% margin for the largest and most profitable multinational enterprises.

We will provide for appropriate coordination between the application of the new international tax rules and the removal of all Digital Services Taxes, and other relevant similar measures, on all companies.

ON CLIMATE CHANGE:

We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD)framework, in line with domestic regulatory frameworks.

We …agree on the need for a baseline global reporting standard for sustainability, which jurisdictions can further supplement.

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We commit to a multi-year effort to deliver the significant structural change needed to meet our net zero commitments and environment objectives in a way that is positive for jobs, growth, competitiveness and fairness.

We commit to properly embed climate change and biodiversity loss considerations into economic and financial decision-making, including addressing the macroeconomic impacts and the optimal use of the range of policy levers to price carbon.

ON THE GLOBAL ECONOMIC RECOVERY:

We commit to sustain policy support as long as necessary and invest to promote growth, create high-quality jobs and address climate change and inequalities.

As our economies re-open, we will continue to take steps to limit the uneven impact of the crisis by targeting support to where it is needed most.

Once the recovery is firmly established, we need to ensure the long-term sustainability of public finances to enable us to respond to future crises and address longer-term structural challenges, including for the benefit of future generations.

ON STABLECOIN:

We reiterate that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.

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