G20 to call for global tax deal to be finalized by October

In this June 5, 2021 photo, tourists pass a café terrace at the Rialto bridge in Venice, Italy. (GIULIA MARCHI / BLOOMBERG)

Group of 20 finance ministers are to push for unresolved issues in a proposed global corporate tax overhaul to be ironed out by October, and are urging holdouts to join the deal, according to the latest version of their statement from a meeting in Venice.

The statement, which two sources said was expected to be released without changes, said the ministers also endorsed a recent deal among 131 countries on taxation of multinationals' profits and setting a global minimum corporate tax rate of at least 15 percent.

"We call on (countries involved in the global talks) to swiftly address the remaining issues and finalise the design elements within the agreed framework together with a detailed plan for the implementation of the two pillars by our next meeting in October," the statement said.

"We invite all members (involved in the discussion) that have not yet joined the international agreement to do so."

Finance ministers and central bankers are meeting Friday and Saturday in Venice, and they’re expected to release a statement at the gathering’s conclusion

Finance ministers and central bankers are meeting Friday and Saturday in Venice, and they’re expected to release a statement at the gathering’s conclusion. While an endorsement of the deal became a fait accompli after all G20 nations involved signed on to the agreement at the Organization for Economic Cooperation and Development next week, the formal blessing will be a key milestone in the yearslong talks.

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The negotiations could still get bogged down over disagreements such as how much tax revenue should be redistributed to developing economies, and whether countries will meet the US demand to withdraw digital levies once new global rules are in place. In a related dispute, the US is pressing European officials to reconsider plans to enact a new digital tax across the 27-member European Union.

At the same time, the Biden administration faces challenges in getting US lawmakers to sign off on the accord, which could delay implementation.