G-7 agrees to exclude US from global minimum tax

Jiji Press, Philippine News Agency

The agreement followed a US move to withdraw the proposed “revenge tax” that Washington was preparing to introduce as a measure against the minimum tax. (Pexels Photo)

WASHINGTON – The Group of Seven major powers said Saturday that they have agreed to exclude American companies from an international agreement to impose a minimum corporate tax rate of 15 percent on global businesses.

The agreement followed a US move to withdraw the proposed “revenge tax” that Washington was preparing to introduce as a measure against the minimum tax.

The minimum tax framework is designed to be enforced by foreign authorities in response to tax avoidance by multinational companies using tax havens. The United States had objected, arguing that it would increase taxes on its companies.

In 2021, about 140 countries, mainly members of the Organization for Economic Cooperation and Development, including the United States, agreed on international tax rules including the minimum corporate tax rate.

However, US President Donald Trump stated in an executive order signed in January this year that the international tax rules would not apply to his country. (Jiji Press)