Treasury Secretary Janet Yellen testifies before the House Oversight and Government Reform Committee hearing on Sept. 30, 2021. More than 130 countries agreed to set a minimum global corporate tax rate, a proposal spearheaded by Yellen.

Al Drago/AFP via Getty Images

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Al Drago/AFP via Getty Images

Treasury Secretary Janet Yellen testifies before the House Oversight and Government Reform Committee hearing on Sept. 30, 2021. More than 130 countries agreed to set a minimum global corporate tax rate, a proposal spearheaded by Yellen.

Al Drago/AFP via Getty Images

More than 130 countries on Friday backed a landmark agreement to set a new minimum tax rate for companies around the world.

The minimum tax rate of 15% has the potential to transform the global business landscape, but the agreement still faces a rocky path given that it must be passed by a closely divided Congress and approved by each of the countries.

Nonetheless, the deal delivers a big win for Treasury Secretary Janet Yellen, who has spearheaded the proposal, saying it would end the practice of companies shopping around the world for countries with the lowest tax jurisdictions.

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