EXPLAINER: How global deal stems corporate use of tax havens

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Complex global talks have forged a deal on sweeping changes in how multinational companies are taxed. The goal is to deter global companies from stashing profits in countries where they pay little or no taxes  _ better known as tax havens. The sweeping deal was agreed Friday among 136 countries in talks overseen by the Organization for Economic Cooperation and Development. The most important feature is a global minimum tax of at least 15%. That was a key initiative pushed by U.S. President Joe Biden and Treasury Secretary Janet Yellen. Yellen said the minimum tax will end a decadeslong “race to the bottom” due to countries cutting tax rates.