What is the global minimum tax? Thanks for asking! 

At the end of last week, finance ministers from the G7 countries met in London and formally endorsed a global minimum corporate tax rate. Going forward, companies will have to pay a minimum of 15% tax on their profits.

The framework is part of an effort to stop multinationals, and in particular the GAFA companies Google, Amazon, Facebook and Apple, from profit-shifting to tax havens. Tech companies are able to easily move between countries due to the nature of their business. 

How will the global minimum tax rule actually work? Why do we need such a tax in the first place? In under 3 minutes, we answer your questions!

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