US wins exemptions from global minimum corporate tax rules
Financial Times••nation
Key Points:
- Over 145 countries have agreed to exempt US multinationals from paying higher corporate taxes overseas, weakening the 2021 global minimum corporate tax deal brokered by the OECD.
- The agreement follows a G7 negotiation that carved out exemptions for US companies to preserve multilateral tax cooperation after the US under President Trump demanded such carve-outs and threatened retaliatory taxes.
- The deal includes "safe harbours" for multinationals based in jurisdictions meeting minimum tax requirements, with a review clause allowing other countries to seek similar exemptions if they implement the global minimum tax by 2027.
- Some countries, including China and EU members Poland, Estonia, and the Czech Republic, initially objected to the deal over competitiveness concerns but later withdrew
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