G20 leaders in Rome. | Source: G20

World leaders have formally agreed to an overhaul of international tax rules that would impose a new global minimum tax on business profits of 15 percent, the Organization for Economic Cooperation and Development (OECD) has announced. The agreement at this year’s G20 summit in Rome is intended to curb the benefits seen by large companies that shift profits overseas to tax havens, which supporters of the deal argue has limited the amount of tax revenue countries are able to collect.

The deal also intends to update international tax rules to reflect the realities of the digital era. Rather than taxing a company where its operations are, the rules would allow countries to tax a company where its services are sold, The New York Times notes….

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