130 countries back deal on global minimum tax for companies

(Handouts/PA)

Some 130 countries have agreed on a global minimum tax backed by US President Joe Biden as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates.

The agreement is an attempt to address challenges presented by a globalised and increasingly digital world economy in which profits can be relocated across borders and companies can earn online profits in places where they have no taxable headquarters.