Washington, June 6: US Treasury Secretary Janet Yellen said that the G7 nations have agreed to support new rules that will achieve a global minimum tax rate of at least 15 per cent.
Calling it a "significant, unprecedented" commitment, Yellen said in a statement on Saturday that the global minimum tax would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the US and around the world, reports Xinhua news agency.
"The global minimum tax would also help the global economy thrive, by levelling the playing field for businesses and encouraging countries to compete on positive bases," she said.
The UK Treasury, meanwhile, said in a statement that the principle of at least 15 percent global minimum corporation tax operated on a country by country basis creates a more level playing field for British firms and cracks down on tax avoidance.
The G7 agreement came about two weeks after the US Treasury Department said it had proposed that the global minimum tax rate should be at least 15 per cent, noting that the final rate could go even higher.
The G7 Finance Ministers' meeting took place in London on June 4-5.