How will the US being exempt from global minimum tax rates affect US-owned UK businesses?

The EU’s control over taxation is tightening

At the beginning of this year, more than 145 countries agreed to amend a 2021 global minimum corporate tax agreement, to align it with the legal framework in the United States, which has decided to no longer take part in this arrangement under President Donald Trump. He has threatened  retaliatory taxes against any countries that  impose levies on U.S. firms under the 2021 deal. When Trump took office, at the start of 2025, he declared that the …

How will the US being exempt from global minimum tax rates affect US-owned UK businesses?

For multinational businesses operating across borders, it is necessary to understand the implications of the OECD’s Pillar Two rules and the introduction of a global minimum tax rate. This is especially important as, after months of negotiations, US-based multinationals will now be exempt from the 15 per cent tax rate and will continue to rely on domestic regimes. If your business is part of a US-headquartered group with UK operations, then it i…