China’s Likely Bid for Tax Exemption Poses Risk to Global Accord

Rich nations are bracing for China to seek exemptions from a global minimum corporate tax, a potential stumbling block for governments racing to reach wider international consensus on the plan next month.

Some officials see China as not easily signing on to the global minimum tax rate of at least 15% endorsed by Group of Seven finance ministers last week, people familiar with the discussions said on condition of anonymity because of the sensitivity of the talks.

China has a basic corporate tax rate of 25% for most companies, but reductions for high-tech sectors and for investment in research ...