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At the G20 summit, countries cooperate to reach a global tax reform agreement

  At the G20 summit held in Rome a few days ago, the leaders of the world’s major economies formally reached a consensus on a global tax change agreement and supported the levy of a minimum 15% tax rate for large enterprises such as multinational corporations. This agreement was signed by about 136 countries, and these countries together accounted for 90% of the global GDP on the map. 

  According to Reuters, this tax agreement was proposed by the United States, and the U.S. government has always been deeply dissatisfied with the amount of tax paid by large companies. Since 1980, major global economies have adopted low corporate tax rates as an important means to attract international investment and expand the scale of local companies and employment rates. The long-term decline in global corporate tax rates and even zero income taxes have given multinational companies great tax avoidance space. Only a few low-tax economies can benefit from it, but most countries and regions have suffered serious tax losses. Among them, Ireland and other countries, which are the most active in providing low-tax havens, have successfully eliminated loopholes after deciding to join the agreement this time and ensured the prerequisite for 15% GMT success. 

  The key to the success of the reform of the international tax system is the two-pillar plan formed after the Organization for Economic Cooperation and Development (OECD) coordinated more than a thousand large enterprises and the government through dialogue. The first pillar will establish new rules on tax payment locations and a new method of sharing taxation rights between countries; the second pillar will solve the problem of multinational companies transferring profits to low-tax or tax-free areas by setting the world’s lowest corporate tax rate. The problem of evading taxes. U.S. Treasury Secretary Yellen said on Twitter that U.S. companies and workers will benefit from this agreement, because governments’ tax reduction competitions have led to the loss of the tax base, forcing governments to impose levies on their low-income working class. More taxes have increased the gap between the rich and the poor. Although many large companies located in the United States will also pay higher taxes. This agreement will end the vicious competition in which corporate tax rates are vying for lower.
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