The chancellor has hailed global cooperation after 136 countries agreed a new system ensuring large multi-nationals pay what the UK government describes as the “right tax in the right places”.

Rishi Sunak welcomed the global community’s cooperation as historic tax reforms, and plan to implement them, agreed by the various nations.

Historic reforms will introduce a 15% global minimum rate along with changes to where large firms are taxed, aiming to become effective from 2023

Landmark plan, which comes from the deal agreed in principle by the G7 at talks chaired by the chancellor in June, will mean “multinationals pay their fair share of tax in the countries they do business (Pillar One), along with a minimum 15% corporation tax rate in each country they operate in (Pillar Two)”, according to the UK government.

The aim is for these historic rules to be implemented and effective from 2023.

Sunak commented: “I am proud that the UK has taken a leading role in the world’s efforts to upgrade the global tax system for the modern age – a key priority of our G7 presidency.

“We now have a clear path to a fairer tax system, where large global players pay their fair share wherever they do business.

“The UK has taken an active role in the push for an international solution to the challenge of taxing technology multi-nationals for nearly a decade – with the Chancellor making securing a global agreement a key priority of the UK’s G7 Presidency.

“The deal struck today means that firms with at least a 10% profit margin will see 25% of any profit above the 10% profit margin reallocated and then subjected to tax in the countries they operate. Previously countries had only agreed to reallocating between 20% and 30%.”