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G7 agrees to avoid higher taxes for US and UK companies
- On June 28, 2025, the G7 nations reached a consensus to exclude American multinational corporations from being subject to a global minimum tax levied by foreign governments.
- The agreement builds on a U.S. initiative designed to protect domestic companies from additional foreign tax levies by acknowledging current U.S. minimum tax regulations.
- The G7 introduced a 'side-by-side' system allowing U.S. companies to be taxed only domestically on their global profits, removing the controversial Section 899 tax.
- Section 899, called a 'revenge tax,' had imposed levies on firms with foreign ownership and had raised concerns about inhibiting foreign investment in the U.S.
- This agreement aims to provide stability and certainty to businesses internationally while the U.S. and G7 continue negotiating an acceptable, implementable global tax framework.
96 Articles
96 Articles
G7 exempts US from applying minimum tax deal
G7 countries have agreed to exempt the United States from applying a 15 percent minimum corporate tax rate, the Canadian G7 presidency said in a statement Saturday night. The other members of the group of Western industrialized countries caved in to shield their own firms from Washington’s threat of retaliation. The agreement was reported by POLITICO on Friday. “It is an honorable compromise as it spares us from the automatic retaliations of Se…
G7 Agrees To Exempt US Multinationals From Global Minimum Tax
The Group of Seven nations said Saturday they have agreed to exempt US multinational companies from a global minimum tax imposed by other countries -- a win for President Donald Trump's government, which pushed hard for the compromise.
The US has agreed with the other G7 states on tax relief for US corporations.
Businesses are already taxed in the United States, they point to Member States. A decision facilitates "new progress" and preserves "taxable sovereignty".
The United States and the nations of the Group of Seven (G-7) agreed on a system designed to prevent a global tax war by creating a “parallel” model that exempts U.S. companies from some elements of an existing global agreement.As part of the deal, U.S. authorities agreed to remove a provision from President Donald Trump’s tax cut law that would have increased taxes on U.S. income generated by companies and non-U.S. individuals.
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