G7 economies agreed on Saturday to support a minimum global tax rate of 15% and interest is now turning to the G20 for a broader agreement on the new tax proposals.
Analysts say the tax deal will not hurt companies unless there is an agreement with countries considered tax havens, such as Ireland, whose economy is booming with billions of dollars in multinational investment due to lower tax rates.
Shares of Google, Amazon.com, Apple, Microsoft and Alphabet, Google’s parent company, fell between 0.4% and 0.7%. The European index of technology stocks used to be unchanged.
“Implementation details need to be clarified and possibly further mitigated,” said a State Street Global Markets analyst.
Dublin, which resists the European Union‘s efforts to harmonize its tax rules, is unlikely to accept a higher tax rate unquestionably.
“Or the immediate impact on the market is expected to be minimal,” said Ian Williams, an analyst at Peel Hunt.