US will be exempt from global tax deal targeting profits of large multinationals

"Nearly 150 countries have agreed on a landmark plan to stop large global companies shifting profits to low-tax jurisdictions, but the US will be exempt from the deal, angering tax transparency groups. The plan, finalised by the Organisation for Economic Cooperation and Development, excludes large US-based multinational corporations from the 15% global minimum tax after negotiations between the Trump administration and other members of the G7."

"The OECD secretary general, Mathias Cormann, described the agreement as a landmark decision in international tax cooperation that enhances tax certainty, reduces complexity, and protects tax bases. Scott Bessent, the US treasury secretary, called the deal a historic victory in preserving US sovereignty and protecting American workers and businesses from extraterritorial overreach. The most recent version of the deal waters down a landmark 2021 agreement that set a minimum global corporate tax of 15%."

"The idea was to stop multinational corporations, including Apple and Nike, from using accounting and legal manoeuvres to shift earnings to low- or no-tax havens. Those havens are typically places like Bermuda and the Cayman Islands, where the companies actually do little or no business. Donald Trump criticised the 2021 deal negotiated by the Biden administration, saying it wasn't applicable in the US. The Trump administration then threatened retaliatory taxes against countries that imposed levies on US firms under the 2021 deal."

Nearly 150 countries endorsed a plan aimed at stopping large multinational companies from shifting profits to low-tax jurisdictions, while exempting large US-based multinationals from the 15% global minimum tax after negotiations involving the US. The OECD described the agreement as enhancing tax certainty, reducing complexity, and protecting tax bases. US officials framed the deal as preserving US sovereignty and shielding American workers and businesses from extraterritorial overreach. The revised plan weakens a 2021 agreement that sought a 15% minimum corporate tax to curb profit shifting to havens like Bermuda and the Cayman Islands. The Trump administration criticised the 2021 deal and threatened retaliatory taxes, prompting renegotiation.

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