Islamabad June 06 2021 - Group of Seven governments, known as G-7, has reached a deal to impose minimum corporate tax rate of at least 15 percent in ongoing international negotiations and and put in place procedures to ensure taxes were paid in the countries where businesses operate. Reuters reported.
System Limited, TRG Pakistan Limited and Netsol profitability is going to hit badly if this will be implemented on technology companies too. In Pakistan, technology companies are tax free under the current tax regime to promote IT sector in order to boost economic growth. Government efforts have start yield results as Pakistani start ups, mostly related to IT sector, have attracted more than USD100 million during the period of last two month in a time when Foreign Direct Investment is falling.
Finance ministers are met face to face for the first post COVID from Friday to Saturday in London, as reported by Bloomberg. Agreeing on the minimum tax rate is the only one of two parts of a broader deal that countries have reached, which also covered how to divide up levies on some of the biggest multinational firms like Facebook Inc. and Amazon.com Inc.
The G7 ministers said they would "commit to a global minimum tax of at least 15 percent on a country by country basis", as per the final agreement.
"After years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age"
British finance minister Rishi Sunak told reporters.
