EXPLAINER: How G20-backed corporate minimum tax would work

By DAVID McHUGH
AP Business Writer

ROME (AP) — Leaders of the Group of 20 countries have expressed support for a deal that makes sweeping changes in how big global companies are taxed. The goal is to deter global companies from stashing profits in nations where they pay little or no tax — countries often described as tax havens. The most important feature is a global minimum tax of at least 15%. That was a key initiative pushed by U.S. President Joe Biden. The deal is aimed at ending a long-term decline in the corporate share of the tax burden due to competition from havens. Countries would enact the tax through their legislators to take effect from 2023.