G7 Reaches Deal to Exempt US Multinationals from Global Minimum Tax
The Group of Seven (G7) nations has agreed to exempt US multinational companies from a global minimum tax imposed by other countries. This win for President Donald Trump’s government allows US companies to benefit from a “side-by-side” solution, where they’ll only be taxed at home on both domestic and foreign profits
According to the G7 statement, the agreement acknowledges existing US minimum tax regulations and seeks to enhance stability in the international tax framework. US Treasury Secretary Scott Bessent signaled Thursday that a deal was forthcoming among G7 nations, defending American interests
The exemption is part of a broader effort to stabilize the international tax system. The G7 nations aim to facilitate further progress, including constructive dialogue on preserving tax sovereignty for all countries. However, critics argue that this move could undermine the global minimum tax deal
Markus Meinzer, director of policy at the Tax Justice Network, labeled the G7 deal a “hasty cave-in” that would leave the minimum tax deal “dead”. In contrast, the OECD’s head of tax, Manal Corwin, noted that the G7 statement is non-binding and any proposal would need approval from 147 countries at the OECD level
The agreement is expected to provide relief to US multinationals, sparing them from paying more corporate tax overseas. This development throws into doubt the status of the biggest global tax deal in over a century. #G7 Reaches Deal to Exempt US Multinationals from Global Minimum Tax#
Trade Tensions Escalate: Trump Ends US-Canada Talks Over Digital Tax
