Group of 20 finance ministers have agreed to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes.
That’s according to a copy of the bloc’s draft communique that has been obtained by wire agency, Reuters.
South Africa is part of the G20. Facebook, Google, Amazon, and other large technology firms face criticism for cutting their tax bills by booking profits in low-tax countries, regardless of the location of the end customer.
Such practices are seen by many as unfair. The new rules would mean higher tax burdens for large multinational firms but would also make it harder for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates.