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Mexico backs G7 corporate tax plan, aims to include in 2022 budget

Published 06/07/2021, 11:33 PM
Updated 06/07/2021, 11:35 PM
© Reuters. FILE PHOTO: People wearing face masks walk along a street as Mexico City's authorities announce a full reopening of the city come Monday, the first time since the coronavirus disease (COVID-19) pandemic, Mexico June 4, 2021. REUTERS/Edgard Garrido

MEXICO CITY (Reuters) - Mexico backs an agreement reached by the Group of Seven (G7) economies for a minimum global corporate tax rate of at least 15% and hopes to incorporate the scheme into its 2022 budget plan, a Mexican finance official said on Monday.

G20 countries, including Mexico, will consider a broader accord next month in Venice on the heels of the historic G7 deal reached at the weekend that aims to squeeze more money out of multinational companies and reduce incentives for low-tax offshore havens.

"We are pleased with the initiative because it facilitates a global agreement and avoids competition to lower rates," Deputy Finance Minister Gabriel Yorio told Mexican radio program Formula Financiera.

© Reuters. FILE PHOTO: People wearing face masks walk along a street as Mexico City's authorities announce a full reopening of the city come Monday, the first time since the coronavirus disease (COVID-19) pandemic, Mexico June 4, 2021. REUTERS/Edgard Garrido

If G20 countries reach a deal, Yorio said Mexico would look to include the details in the 2022 budget plan to be submitted in September ahead of a G20 review around October.

"We're going to see if we can have an early definition of how this tax would work operationally," Yorio said. "If we have time, we would include it in the 2022 budget plan."

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