The United States and the Group of Seven (G7) nations have agreed to support a proposal that would exempt U.S. companies from certain elements of the existing global corporate tax agreement, according to a statement released Saturday by Canada, which currently holds the G7 presidency.
The statement said a new “side-by-side” system has been created in response to the U.S. administration’s decision to withdraw the Section 899 retaliatory tax provision from President Donald Trump’s recent tax and spending bill.
The G7 noted that the new arrangement acknowledges current U.S. minimum tax laws and aims to foster greater stability within the international tax system. Officials added that they look forward to negotiating a solution that is both “acceptable and implementable to all.”
In January, Trump signed an executive order declaring that the 2021 global corporate minimum tax agreement—negotiated by the Biden administration with nearly 140 countries—would not apply to the United States. He also warned that countries imposing taxes on U.S. firms under the 2021 deal would face retaliatory levies.
