PARIS, Jan 5 (Reuters) – More than 145 countries agreed on Monday to amend a 2021 global minimum corporate tax agreement, addressing Washington’s concerns the rules \u200bcould penalise U.S. multinational companies.<\/p>\n
The Organisation for Economic Cooperation and Development said the \u200cfresh package preserves the 15% global minimum tax framework designed to ensure large multinationals pay a baseline tax wherever \u200cthey operate.<\/p>\n
The update includes simplifications and carve-outs to align U.S. minimum tax laws with global standards, accommodating earlier objections raised by the Trump administration.<\/p>\n
OECD head Mathias Cormann said in a statement the arrangement “enhances tax certainty, reduces complexity, and protects tax bases.”<\/p>\n
U.S. President Donald Trump declared in \u2060an executive order when he took \u200coffice nearly a year ago that the OECD global minimum tax deal would have “no force or effect” for the U.S.<\/p>\n
Treasury Secretary Scott Bessent \u200dsaid Monday’s agreement would ensure that U.S.-headquartered companies would only be subject to U.S. global minimum taxes and preserve benefits of U.S. research and investment tax credits.<\/p>\n
“This agreement represents a historic victory in \u200bpreserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach,” Bessent said \u200cin a statement. He pledged to continue engagement with other countries on a “constructive dialogue” on taxation of the digital economy, a reference to a second, more difficult pillar of the OECD tax framework.<\/p>\n
As of October, more than 65 countries had begun implementing the 2021 global tax deal, which requires nations to apply a 15% corporate tax or impose a top-up \u2060levy on multinationals booking profits in jurisdictions with lower \u200btax rates.<\/p>\n
The revised agreement solidifies global backing after \u200bG7 countries, including the U.S., brokered a deal in June exempting some U.S. companies from parts of the original framework.<\/p>\n
A broader agreement, reached on Monday \u200dafter Washington pressured holdouts \u2060to back the updated arrangement, helps stabilise the global deal.<\/p>\n
The pact’s future was thrown into doubt last January when President Donald Trump criticized the 2021 deal negotiated \u2060by the Biden administration, saying it wasn’t applicable in the U.S.<\/p>\n
The Trump administration threatened retaliatory taxes against countries \u200cthat imposed levies on U.S. firms under the 2021 deal.<\/p>\n
(Reporting by Leigh \u200cThomas; Editing by Bernadette Baum and Nick Zieminski)<\/p>\n","protected":false},"excerpt":{"rendered":"PARIS, Jan 5 (Reuters) – More than 145 countries agreed on Monday to amend a 2021 global minimum…\n","protected":false},"author":2,"featured_media":390398,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,189516,12,101,189520,189519,189517,189521,189518,4666,5651],"class_list":["post-390397","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-corporate-tax","tag-donald-trump","tag-economy","tag-g7-countries","tag-global-deal","tag-global-minimum-tax","tag-global-tax-deal","tag-oecd-tax","tag-scott-bessent","tag-tax-credits"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/390397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=390397"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/390397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/390398"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=390397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=390397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=390397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}