The Portuguese Socialist Party (PS) urges the national government to oppose the G7’s exemption of the United States from a 15% minimum tax on multinational profits within the European Union (EU).
In a resolution published on the Assembly of the Republic’s website, dated July 11, the PS parliamentary group calls for Portugal to reaffirm its commitment to the minimum taxation threshold established by the international agreement reached on October 8, 2021, with over 130 countries and jurisdictions under the “OECD/G20 Inclusive Framework on BEPS.”
The PS’s recommendation follows the G7’s decision on June 28, which allowed the United States to forgo applying the minimum corporate tax to its companies, a group comprising the US, Japan, Germany, the United Kingdom, France, Italy, and Canada.
The PS advises the government of Luís Montenegro to express, within the EU and the OECD, Portugal’s opposition to the G7’s decision to exempt the United States from the global minimum tax.
Describing it as a significant concession to unilateral pressures, the PS claims this decision undermines multilateral cooperation and the international tax system, made amid threats of retaliatory tariffs from the US administration.
Portugal has already transposed the European directive implementing the agreement, albeit delayed. Given this commitment, the PS argues that Portugal, as an EU member and signatory to the agreement, must reaffirm its dedication to international tax fairness and the complete and coherent implementation of the Global Minimum Tax Regime (RIMG) to ensure its universal application without exceptions.
The PS considers the G7’s recent decision a severe setback for the agreement’s execution, necessitating action from the Portuguese government within the EU and the OECD, where the agreement’s terms are monitored.
The PS also proposes that the government urges the European Commission and member states to maintain a firm stance in defense of the agreement and actively contribute to strengthening global tax fairness, multilateral cooperation, and the integrity of the international tax system in relevant international forums.
The implementation of the 15% global minimum tax has experienced advances and setbacks since its introduction in October 2021.
Following Donald Trump’s election on November 5, 2024, the US stance shifted from supportive under President Joe Biden’s administration.
On January 21, 2025, President Trump withdrew the US from the 15% minimum corporate tax agreement for multinationals, leading to the G7’s acceptance.
The minimum tax aims to prevent profit shifting by large multinationals to tax havens, ensuring that companies from the largest economic groups pay at least a 15% effective tax rate on profits, regardless of their jurisdiction.
For jurisdictions with a corporate tax rate below 15%, the parent company’s tax authorities could impose a supplementary tax to ensure the effective minimum rate is reached.
With the US withdrawal, implementing these rules becomes more challenging.
