Plans for a Global Minimum Tax Revolution, Explained: QuickTake

Multinational companies have long used creative but legal ways to shrink their tax bills. One is to book profits from customers in places like Boston and Berlin as if they came from, say, Bermuda, which has no corporate income tax. The world’s richest economies have agreed to jointly pursue a revamp of the global tax system that would undercut the effectiveness of such a strategy.

1. What’s the agreement?

The Group of Seven nations -- Canada, France, Germany, Italy, Japan, the U.K. and U.S. -- reached an accord to support the outlines of a new global tax system that ...