Financial Firms Poised to Be Exempt From New Global Tax Rules By Bloomberg

© Bloomberg. Skyscrapers in the Canary Wharf business, shopping and financial district in London, U.K., on Monday, April 26, 2021. In a financial hub that draws more international capital than any other, the fate of the older buildings could hit the fortunes of some of the world’s biggest real-estate investors, from China Investment Corp. to Norway’s sovereign wealth fund and Malaysia’s biggest pension fund.

(Bloomberg) — Financial-services companies are set to be exempt from a global plan to make multinational firms pay more tax to the countries where they operate, in a win for U.K. Chancellor of the Exchequer Rishi Sunak.

Negotiators in talks hosted by the Organization for Economic Cooperation and Development have accepted Sunak’s proposal to ensure that financial firms, such as global banks with head offices in London, wouldn’t face additional tax burdens, according to people familiar with the discussions who spoke on condition of anonymity because the talks are private.

The Paris-based OECD is hosting a meeting Thursday as part of efforts to reach high-level consensus on the principles of the plan among more than 100 countries, following an accord among Group of Seven nations in early June. Whatever is decided will be considered by Group of 20 finance ministers in Venice next week, with broader agreement on the plan’s details likely to come later in the year.

Read more: Global Tax Talks Face 10-Day Sprint for Deal as Hurdles Persist

The news was reported earlier by the Financial Times.

The talks aim to upend decades of tax laws and agreements, drive more tax revenue to governments and address concerns that multinational companies like Inc (NASDAQ:). and Facebook Inc (NASDAQ:). aren’t paying enough. An accord could also roll back the domestic digital taxes some countries have implemented, soothing growing trade tensions with the U.S.

©2021 Bloomberg L.P.

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