The US Treasury reached an agreement with G7 countries to exempt American companies from global minimum taxes. This decision was influenced by President Trump and lobbying from multinational companies. Years ago, the international community recognized the issue of global companies avoiding fair tax contributions. The 2021 OECD/G20 framework included two pillars, with Pillar Two addressing minimum corporate tax rates. While it aimed for a 15% rate, it faced criticism for being lower than needed and included exemptions. This framework aimed to stop the harmful tax competition among nations.
The US Treasury secured an agreement with G7 nations not to apply global minimum taxes on American companies, influenced by President Trump and multinationals.
The OECD/G20 framework produced two pillars, with only Pillar Two focusing on a global minimum corporate tax, adopted amidst international pressure and opposition.
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