Some 130 countries have agreed on a global minimum tax backed by US President Joe Biden as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates, AP reported.

The agreement announced Thursday is an attempt to address challenges presented by a globalized and increasingly digital world economy in which profits can be relocated across borders and companies can earn online profits in places where they have no taxable headquarters.

The deal calls for a global minimum tax of at least 15%, a key element pushed by Biden as he seeks to raise more revenue for his infrastructure and clean energy plans. Technical details still need to be worked out and it would be at least 2023 before the agreement takes effect.

The agreement also provides for taxing part of the profits of the largest global companies in countries where they do business online but may have no physical presence.

Under the deal, countries could tax their companies’ foreign earnings up to 15% if they go untaxed through subsidiaries in other countries. That would remove the incentive to use accounting and legal schemes to shift profits to low-rate countries where they do little or no business, since the profits would be taxed at home anyway. Such tax avoidance practices cost countries between $100 billion and $240 billion in lost revenue annually, according to the OECD.

More discussion is expected at the meeting of the G20 finance ministers in Venice next week, ahead of a final endorsement by the full G20 summit of country leaders in October.

The proposal to tax companies where they have revenue but no physical presence would require countries to sign up for a multilateral convention, while the minimum corporate tax could be adopted by each country through national legislation on a voluntary basis.