US EditionG7 agrees to avoid higher taxes for US and UK companies
- On June 28, the G7 countries reached a consensus to exclude US multinational corporations from certain provisions of the 15% global minimum tax applied by other nations.
- This agreement follows a 2021 OECD deal requiring firms with over €750 million revenue to pay at least 15% tax in each jurisdiction, which Trump opposed and effectively pulled the US out of.
- The US removed Section 899 from Trump's tax bill, a so-called 'revenge tax' that would have imposed retaliatory levies on foreign investors, easing concerns from foreign businesses and Britain.
- US Treasury Secretary Scott Bessent indicated that G7 nations have reached a mutual agreement aimed at protecting American interests through a coordinated "side-by-side" approach, with the goal of enhancing stability in the global tax system.
- The deal signals US willingness for international tax cooperation, likely boosting cross-border investment flows and providing greater certainty and stability for multinational businesses.
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65 Articles
The US has agreed with the other G7 states on tax relief for US corporations.
Businesses are already taxed in the United States, they point to Member States. A decision facilitates "new progress" and preserves "taxable sovereignty".
The United States and the nations of the Group of Seven (G-7) agreed on a system designed to prevent a global tax war by creating a “parallel” model that exempts U.S. companies from some elements of an existing global agreement.As part of the deal, U.S. authorities agreed to remove a provision from President Donald Trump’s tax cut law that would have increased taxes on U.S. income generated by companies and non-U.S. individuals.
The pact had been advanced this week by U.S. Treasury Secretary Scott Bessent, who welcomed the defense of his country's interests and in return asked Congress to remove the so-called clause 889, which contemplated reprisals.
Victory for Donald Trump and the big tech USA. The seven largest economies in the world have reached an agreement to prevent the largest star companies and stripes from paying more taxes...
The Canadian Presidency explains that this is a parallel solution that exempts American companies from some parts of the new tax regime, because of the taxes they already pay in the U.S.
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