The Group of Seven (G-7) finance ministers are nearing an agreement to push in international tax negotiations for a global minimum tax of at least 15 percent, Bloomberg reported Friday, citing people familiar with the issue.
A rate of at least 15 percent would match a proposal that the Treasury Department pitched last month.
The G-7 finance ministers, including U.S. Treasury Secretary Janet Yellen, are currently meeting in London and are expected to release a statement at the end of their meetings. The G-7 consists of the U.S, the United Kingdom, Canada, France, Germany, Italy and Japan.
Bloomberg reported that it’s not yet clear if a specific rate would be included in the statement. A draft statement Reuters reported on earlier this week did not mention a specific rate.
The G-7 meeting comes as the Group of 20 (G-20) and the Organization for Economic Cooperation and Development, two broader groups of countries, are holding discussions about international tax issues, including a global minimum tax. The G-20 is hoping to reach a political agreement in July.
The Biden administration views a deal on a global minimum tax as a way to end a “race to the bottom” on corporate taxes, and as a way to prevent U.S. companies from becoming less competitive if the U.S. raises its corporate tax rate.
There currently is no global minimum tax. An agreement on a global minimum tax would encourage countries to establish mechanisms to ensure that their companies pay a minimum level of tax on their foreign earnings.