Latest news with #Pillar2
Mint
29-06-2025
- Business
- Mint
G7 back new side-by-side tax proposal exempting American, UK firms from global tax rules
New Delhi [India], June 29 (ANI): US-parented companies will be exempted from certain elements of an existing global tax agreement according to a statement released by the Group of Seven countires which detailed the new proposal signed by the United States and its G7 partners. The agreement will see US companies benefit from a "side-by-side" solution under which they will only be taxed at home, on both domestic and foreign profits, the G-7 said, in a statement released by Canada, which holds the group's rotating presidency. Earlier this year the US Secretary of the Treasury outlined the United States' concerns regarding the Pillar 2 rules agreed by the OECD/G20 Inclusive Framework on BEPS and set out a proposed 'side-by-side' solution under which US parented groups would be exempt from the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR) in recognition of the existing US minimum tax rules to which they are subject. The side-by-side system could "provide greater stability and certainty in the international tax system moving forward, including a constructive dialogue on the taxation of the digital economy and on preserving the tax sovereignty of all countries, the statement read. The US Treasury Department noted that with Section 899 removed from the Senate version of the bill, there is now a shared understanding that the side-by-side system could help maintain progress made by jurisdictions within the Inclusive Framework in combating base erosion and profit shifting. "Following the removal of section 899 from the Senate version of the One, Big, Beautiful Bill, and consideration of the success of Qualified Domestic Minimum Top-up Tax implementation and its impact - there is a shared understanding that a side-by-side system could preserve important gains made by jurisdictions inside the Inclusive Framework in tackling base erosion and profit shifting and provide greater stability and certainty in the international tax system moving forward, the G7 announced. We look forward to discussing and developing this understanding within the Inclusive Framework," the Treasury said in a post on X. The removal of Section 899 has also been welcomed by the United Kingdom. British businesses, which had recently voiced concerns about potentially facing higher taxes due to the measure, will no longer be subject to those risks. G7 officials echoed the importance of collaboration, expressing their commitment to pursuing a solution that is "acceptable and implementable to all." Earlier this year, through an executive order, Donald Trump declared that the 2021 global corporate minimum tax agreement--negotiated by the Biden administration and supported by nearly 140 countries--would not apply in the United States.
Mint
29-06-2025
- Business
- Mint
G7 back new side-by-side tax proposal exempting American, UK firms from global tax rules
New Delhi [India], June 29 (ANI): US-parented companies will be exempted from certain elements of an existing global tax agreement according to a statement released by the Group of Seven countires which detailed the new proposal signed by the United States and its G7 partners. The agreement will see US companies benefit from a "side-by-side" solution under which they will only be taxed at home, on both domestic and foreign profits, the G-7 said, in a statement released by Canada, which holds the group's rotating presidency. Earlier this year the US Secretary of the Treasury outlined the United States' concerns regarding the Pillar 2 rules agreed by the OECD/G20 Inclusive Framework on BEPS and set out a proposed 'side-by-side' solution under which US parented groups would be exempt from the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR) in recognition of the existing US minimum tax rules to which they are subject. The side-by-side system could "provide greater stability and certainty in the international tax system moving forward, including a constructive dialogue on the taxation of the digital economy and on preserving the tax sovereignty of all countries, the statement read. The US Treasury Department noted that with Section 899 removed from the Senate version of the bill, there is now a shared understanding that the side-by-side system could help maintain progress made by jurisdictions within the Inclusive Framework in combating base erosion and profit shifting. "Following the removal of section 899 from the Senate version of the One, Big, Beautiful Bill, and consideration of the success of Qualified Domestic Minimum Top-up Tax implementation and its impact - there is a shared understanding that a side-by-side system could preserve important gains made by jurisdictions inside the Inclusive Framework in tackling base erosion and profit shifting and provide greater stability and certainty in the international tax system moving forward, the G7 announced. We look forward to discussing and developing this understanding within the Inclusive Framework," the Treasury said in a post on X. The removal of Section 899 has also been welcomed by the United Kingdom. British businesses, which had recently voiced concerns about potentially facing higher taxes due to the measure, will no longer be subject to those risks. G7 officials echoed the importance of collaboration, expressing their commitment to pursuing a solution that is "acceptable and implementable to all." Earlier this year, through an executive order, Donald Trump declared that the 2021 global corporate minimum tax agreement--negotiated by the Biden administration and supported by nearly 140 countries--would not apply in the United States. He also threatened to impose a retaliatory tax on nations implementing the global tax rules against US firms, a move viewed as harmful to many foreign companies operating within the US. (ANI)
India Gazette
29-06-2025
- Business
- India Gazette
G7 back new 'side-by-side' tax proposal exempting American, UK firms from global tax rules
New Delhi [India], June 29 (ANI): US-parented companies will be exempted from certain elements of an existing global tax agreement according to a statement released by the Group of Seven countires which detailed the new proposal signed by the United States and its G7 partners. The agreement will see US companies benefit from a 'side-by-side' solution under which they will only be taxed at home, on both domestic and foreign profits, the G-7 said, in a statement released by Canada, which holds the group's rotating presidency. Earlier this year the US Secretary of the Treasury outlined the United States' concerns regarding the Pillar 2 rules agreed by the OECD/G20 Inclusive Framework on BEPS and set out a proposed 'side-by-side' solution under which US parented groups would be exempt from the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR) in recognition of the existing US minimum tax rules to which they are subject. The side-by-side system could 'provide greater stability and certainty in the international tax system moving forward, including a constructive dialogue on the taxation of the digital economy and on preserving the tax sovereignty of all countries, the statement read. The US Treasury Department noted that with Section 899 removed from the Senate version of the bill, there is now a shared understanding that the side-by-side system could help maintain progress made by jurisdictions within the Inclusive Framework in combating base erosion and profit shifting. 'Following the removal of section 899 from the Senate version of the One, Big, Beautiful Bill, and consideration of the success of Qualified Domestic Minimum Top-up Tax implementation and its impact - there is a shared understanding that a side-by-side system could preserve important gains made by jurisdictions inside the Inclusive Framework in tackling base erosion and profit shifting and provide greater stability and certainty in the international tax system moving forward, the G7 announced. We look forward to discussing and developing this understanding within the Inclusive Framework,' the Treasury said in a post on X. The removal of Section 899 has also been welcomed by the United Kingdom. British businesses, which had recently voiced concerns about potentially facing higher taxes due to the measure, will no longer be subject to those risks. G7 officials echoed the importance of collaboration, expressing their commitment to pursuing a solution that is 'acceptable and implementable to all.' Earlier this year, through an executive order, Donald Trump declared that the 2021 global corporate minimum tax agreement--negotiated by the Biden administration and supported by nearly 140 countries--would not apply in the United States. He also threatened to impose a retaliatory tax on nations implementing the global tax rules against US firms, a move viewed as harmful to many foreign companies operating within the US. (ANI)
The Hill
29-06-2025
- Business
- The Hill
G7 agrees to exclude US from corporate minimum tax
The Group of Seven (G7) said Saturday that it will allow American companies to be excluded from a global minimum tax imposed by other countries, creating instead a 'side-by-side' agreement where regular American tax rules would apply. In 2021, nearly 140 countries agreed to tax multinational companies at a minimum rate of 15 percent, regardless of where they were headquartered, in a deal aimed at preventing conglomerates from seeking out tax havens. The Biden administration was then a proponent of the deal, as it was in line with its plans to raise the corporate tax rate. The Friday move by the G7 is nonbinding and still requires approval from the OECD, the intergovernmental organization that established the 2021 agreement. But the G7 members, which include the world's largest economies, dominate the OECD. The G7 statement is a major win for the Trump administration, which has pushed for the United States to be exempted from the tax agreement. The 'big, beautiful bill' now making its way through the Senate initially included a 'revenge tax' that would have imposed a levy of up to 20 percent on investments from countries with economic policies deemed to be unfair to American businesses, a broad definition that could have included the OECD deal. The language was pulled Thursday after Treasury Secretary Scott Bessent said progress with the G7 had been made, a move celebrated by congressional Republicans. 'We applaud President Trump and his team for protecting the interests of American workers and businesses after years of congressional Republicans sounding the alarm on the Biden Administration's unilateral global tax surrender under Pillar 2,' wrote Sen. Mike Crapo (R-Ind.) and Rep. Jason Smith (R-Mo.), the chairs of each chamber's tax policy committee.
Fibre2Fashion
28-06-2025
- Business
- Fibre2Fashion
OECD Pillar 2 taxes not to apply to US firms: Scott Bessent
US Treasury Secretary Scott Bessent recently indicated about a forthcoming deal among G7 nations allowing US firms to be excluded from certain taxes imposed by other nations. Around 140 nations had concluded an agreement in 2021 to tax multinational companies under the auspices of the Organisation for Economic Cooperation and Development (OECD). This deal has two pillars, the second of which sets a minimum global tax rate of 15 per cent. "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," he said in a series of posts on microblogging platform X. US Treasury Secretary Scott Bessent has indicated about a forthcoming deal among G7 nations allowing US firms to be excluded from certain taxes imposed by other nations. "After months of productive dialogue….on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests," he said on X. "OECD Pillar 2 taxes will not apply to US companies." "OECD Pillar 2 taxes will not apply to US companies," he wrote, adding that officials will work to implement the agreement across the OECD-G20 Inclusive Framework in the coming months. "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, referring to a bill currently before US lawmakers that would slash social programme spending for tax cuts. Section 899 will allow the US government to impose levies on companies with foreign owners and on investors from countries perceived to impose unfair taxes on US businesses. Fibre2Fashion News Desk (DS)
