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The G7 has decided to exempt US multinationals from paying a minimum tax of 15%

The group of countries representing the world's seven major economies has secured an agreement after the US tax system was reviewed and the White House agreed to remove clause 89 of its tax law, allowing the White House to retaliate against those who decided to tax US multinationals.

The G7 countries have agreed to exempt multinational companies in the United States from paying the minimum rate of 15% in corporate tax under the Organisation for Economic Cooperation and Development (OECD) in 2021.

"After discussions on this issue (...) we all understand that a parallel system can ensure significant progress made by the jurisdictions in the Inclusive Framework to address the erosion of the tax base and the distribution of profits and to provide greater stability and certainty to the international tax system in the future," says the G7 communiqué.



US Treasury Secretary Scott Bessent announced this Friday that he will hold the OECD's Chapter 2 meeting. The axis tax "will not apply to American companies," and he thanked his G7 counterparts for their "help in achieving this historic result."

The group of countries representing the world's seven major economies has claimed to have reached an agreement after the US tax system was reviewed and the White House agreed to remove clause 89 of its tax law. This will allow the White House to retaliate against those who decided to tax US multinationals. 

The agreement also stipulates that countries shall cooperate to "safeguard shared political objectives" in order to address "any significant risk" that may arise in relation to "equal conditions".



"The establishment of a bilateral cooperation system will facilitate further progress in stabilizing the international tax system, including constructive dialogue on the taxation of the digital economy and the safeguarding of the fiscal sovereignty of all countries," the statement notes.

The G7, in addition to the US, consists of Germany, the United Kingdom, France, Italy, Japan and Canada, which holds the rotating presidency in these Momsgarbi. 

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