Leaders of G20 countries on Saturday (October 30), agreed on a historic corporate tax reform deal that will corporate tax at minimum levels of 15 per cent. The rules will come into force in 2023.

“We call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023,” the draft conclusions, seen by Reuters, said.

US Treasury Secretary Janet Yellen welcomed the agreement

“Today, every G20 head of state endorsed an historic agreement on new int’l tax rules, including a global min tax that will end the damaging race to the bottom on corporate taxation. It’s a critical moment for the US & the global economy. I congratulate @POTUS on this achievement.” she said on Twitter.

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In another tweet, she said that the deal would “remake the global economy into a more prosperous place for American business and workers”

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“This deal will remake the global economy into a more prosperous place for American business & workers. Rather than competing on our ability to offer lower rates, America will now compete on the skills of our people, our ideas & our capacity to innovate—which is a race we can win,” she said.

US President Joe Biden welcomed the development as well.

“Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax. This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.