Sharjah 24 – AFP: G20 finance ministers on Saturday gave their backing to a "historic" global deal to tax multinational companies more fairly and urged hold-out countries to sign up.

A framework for international tax reform, including a minimum corporate rate of 15%, was agreed this month by 131 countries.

But the endorsement by the 19 biggest economies plus the European Union will help ensure it becomes a reality following years of negotiations.

"After many years of discussions and building on the progress made last year, we have achieved a historic agreement on a more stable and fairer international tax architecture," the final statement said.

"We endorse the key components of the two pillars on the reallocation of profits of multinational enterprises and an effective global minimum tax."

French Finance Minister Bruno Le Maire was quick to hail the agreement, saying it was a once-in-a-century opportunity for reform.

"There is no turning back. We are putting an end to the fiscal race to the bottom and the digital giants will now pay their fair share of taxes," he said. 

The reforms aim to prevent countries competing to offer the lowest tax rates to attract investment, which has often resulted in multinationals paying derisory levels of tax.

Final agreement is not expected until the run-up to the G20 leaders' summit in Rome in October.