G7 Exempts US Multinationals from Global Minimum Tax

Economy

G7 Exempts US Multinationals from Global Minimum Tax

5 months ago

News sources:

LEMONDE

REUTERS

DAWN

INDIATIMES

THEJAKARTAPOST

G7 Exempts US Multinationals from Global Minimum Tax

Credited from: REUTERS

G7 agrees to exempt US companies from the global minimum tax scheme.
The decision comes after concessions from the US regarding its tax legislation.
This new arrangement supports the US's existing minimum tax laws and seeks to stabilize the international tax system.

The Group of Seven (G7) nations have reached an agreement to exempt US multinational corporations from key components of a new global minimum tax, a development significantly influenced by President Donald Trump’s administration. The plan includes a "side-by-side" approach that allows these companies to be taxed domestically on both foreign and local profits, rather than facing supplemental taxes overseas, according to Le Monde, Reuters, and The Jakarta Post.

This decision follows Trump’s earlier proposal, which sought to protect US firms and scrap a controversial "revenge tax" section from his tax bill. The removal of this section was seen as pivotal to garnering broader support within the G7, bringing a sense of stability and certainty to the international tax landscape, as indicated by statements from G7 officials, according to India Times and Dawn.

Le Monde, Reuters, and India Times.