The European Union has adopted a plan for a global minimum 15% tax on big business.

Leaders gave their final approvals on Thursday after months of political wrangling.

The landmark deal between nearly 140 countries aims to stop governments racing to cut taxes in a bid to attract companies.

It was praised by US Treasury Secretary Janet Yellen as “an historic agreement which helps even the playing field”.

Corporation tax is usually based on a company’s profits. But often they might be able to pay less depending on where their offices are registered or how they invest in their business.

The newly-approved plan was drawn up under with the guidance of the Organisation for Economic Cooperation and Development (OECD) and already had the backing of Washington and several major EU economies.

But the implementation of the minimum tax in the 27-nation trading bloc was delayed as member states raised objections or adopted blocking tactics.