An agreement has been reached due to the “recently proposed changes to the U.S. international tax regime” in President Donald Trump’s mega-budget bill, which is still under discussion in the U.S. Senate, the G7 stated in a communiqué today.
Instead of the minimum tax, American multinationals would be subject to a “juxtaposed system,” the document noted, as reported by the French news agency AFP.
This “will facilitate further progress toward stabilizing the international tax system” and “preserve the tax sovereignty of all countries,” the G7 added.
Nearly 140 countries concluded an agreement on multinational taxation in 2021, negotiated under the auspices of the OECD.
This agreement, criticized by Donald Trump, comprises two “pillars,” the second establishing a global minimum rate of 15%.
The decision on whether to exempt American companies from paying this tax will fall to the OECD.
“We hope to quickly reach a solution that is acceptable and implementable by all,” emphasized the G7 in the communiqué.
U.S. Treasury Secretary Scott Bessent assured last Thursday that such an agreement, “which defends American interests,” would be concluded among G7 countries.
Scott Bessent also urged U.S. lawmakers to remove a provision from Donald Trump’s “big and beautiful bill” that would allow the government to impose taxes on companies whose owners are not American, as well as investors from countries that impose taxes deemed unfair to American companies.
This clause, seen as a retaliatory measure, raised many concerns, with many believing it would deter foreign companies from investing in the United States.
