In a defining agreement signed amongst the G7 Nations, it has been agreed upon that a new tax tariff will be imposed upon mega corporations and it would enable the signatories to tax US tech giants such as Amazon Inc. & Facebook Inc.

In what could have a massive effect on corporations, the ruling allowed taxation of foreign earnings of multinational companies, depending upon where they have operations rather than just the country where they were headquartered.

One of them commented that a global tax on large corporations worth at least 15% will make the competition more even for all involved parties.

This deal has aims to modernise a tax code that is nearly a hundred years old.

Among the leading mega corporations, most of them had their representatives look at it in a positive light with Facebook Vice – President of Global Affairs Nick Clegg commenting, “Today’s agreement is a significant first step toward certainty for businesses and strengthening public confidence in the global tax system.”

However, The OECD stated that the entire proposal could take months to implement as there are still certain details to be hammered out like, concerns raised by Ireland which, had created a lucrative low tax environment for many such companies to work in.