US Treasury Secretary Scott Bessent indicated on Thursday that G7 nations are nearing an agreement that would exempt American firms from certain taxes imposed by other countries under the OECD Global Tax Deal.
In a series of social media posts, Secretary Bessent stated, “After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests.”
Nearly 140 countries reached an agreement in 2021 to tax multinational corporations, an accord negotiated under the framework of the Organisation for Economic Co-operation and Development (OECD). This comprehensive deal comprises two “pillars,” with the second pillar establishing a minimum global corporate tax rate of 15 percent.
Bessent affirmed, “OECD Pillar 2 taxes will not apply to US companies.” He further noted that officials would work towards implementing this agreement across the OECD-G20 Inclusive Framework in the coming months.
President Donald Trump has previously expressed reservations about the global tax agreement, and Secretary Bessent on Thursday highlighted progress in addressing these concerns.
“Based on this progress and understanding, I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill,” Bessent added. He was referring to a bill currently before US lawmakers that proposes reductions in social program spending in conjunction with tax cuts.
Section 899, often referred to as a “revenge tax,” would authorize the US government to impose levies on firms with foreign owners and on investors from countries perceived to impose unfair taxes on US businesses. The inclusion of this clause had previously raised concerns that it could deter foreign companies from investing in the United States.
