Janet Yellen, the finance minister, said Thursday that 130 countries have agreed to a global minimum tax on corporations. This move is part of a larger agreement to revise international rules.

According to her, more than 90% of world GDP falls on these 130 countries that have supported the initiative.

“The deal also reportedly includes a framework to eliminate digital services taxes, which targeted the biggest American tech companies.

In their place, officials agreed to a new tax plan that would be linked to the places where multinationals are actually doing business, rather than where they are headquartered.” – write CNBC.

The Organization for Economic Cooperation and Development published a two-pronged approach to international taxation last fall. The creation of a minimum global tax is one of the components.

Source: CNBC