FUKUOKA: Finance Ministers of G20 has agreed to compile common rules to close loopholes used by global tech giants such as Facebook, Google to reduce their corporate taxes.

Facebook, Google, Amazon, and other large technology firms face criticism for cutting their tax bills by booking profits in low-tax countries.

“We welcome the recent progress on addressing the tax challenges arising from digitization and endorse the ambitious program that consists of a two-pillar approach,” the final version of the communique showed on Sunday. “We will redouble our efforts for a consensus-based solution with a final report by 2020.”

Global Tech giants have said they follow tax rules but they pay little tax in Europe, typically by channelling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes.

The G20’s debate on changes to the tax code focus on two pillars that could be a double whammy for some companies.

(Agencies)