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G20 finance ministers have backed an "historic" plan which will see multinational companies pay their "fair share" of tax around the world.

The plan to battle tax avoidance puts in place a minimum global corporate tax rate of 15%.

It is likely to affect companies like Amazon and Facebook.pgslot

So far, 132 countries have signed up to the framework, being championed by The Organization for Economic Cooperation and Development (OECD).

The agreement is a further boost for the plan signed up to by leaders of the G7 major economies in Cornwall a month ago.

The G20 finance ministers - who represent 19 countries with the largest and fastest-growing economies, as well as the European Union - announced their support following a two-day meeting in Venice, Italy.

The UK's Chancellor Rishi Sunak hailed the deal as "historic", adding it would ensure the "global tax system is fit for purpose in a digital age".

French Finance Minister Bruno Le Maire said there would be "no turning back".

"We are putting an end to the race to the bottom and the digital giants will now pay their fair share of taxes," he added. "It's a once-in-a-century tax revolution."

The policy - which will also make companies pay more in the countries where they do business - will now go to a meeting of G20 leaders in October for final consideration.

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