Google and Facebook welcomed a deal by the G7 that would get multinational companies – including tech giants – to pay more tax.
Finance ministers from the group of rich nations, who been meeting in London, agreed a historic deal to set a global minimum rate of corporation tax of 15 percent on large firms.
Many major firms have set up bases in jurisdictions with lower tax rates, which the group said it wanted to crack down on.
Facebook termed the agreement as a “significant first step towards certainty for businesses and strengthening public confidence in the global tax system.”
Meanwhile, a Google spokesperson said the company strongly supports the initiative and hoped for a “balanced and durable” agreement.
Wealthy nations have struggled for several years to agree on a way to raise more revenue from large multinationals like Google, Amazon and Facebook, which often post profits in jurisdictions where they pay little or no tax.