Latest news with #taxagreement
Al Arabiya
16-07-2025
- Business
- Al Arabiya
Berlin says still backs global minimum tax for multinationals
Germany still supports an agreement to impose a 15-percent global minimum tax on multinational companies' profits despite an exemption agreed for US multinationals, Finance Minister Lars Klingbeil said Wednesday. G7 nations last month agreed to exempt the US firms because they are already taxed in the United States -- a win for President Donald Trump's government, which had pushed hard for the compromise. German press reports Tuesday said that Chancellor Friedrich Merz had voiced deep skepticism over whether the international tax project had a future. But Klingbeil, asked about those reports, said Berlin remained committed to the agreement, negotiated over more than 10 years through the Organization for Economic Co-operation and Development (OECD). 'The chancellor and I agree that we are committed to this global minimum tax and that we will do everything to maintain this project,' Klingbeil told a press conference with his French counterpart Eric Lombard near Berlin. Nearly 140 countries struck a deal in 2021 to tax multinationals, an agreement that includes two 'pillars.' The first aims to make multinationals, particularly in the digital sector, pay taxes in the countries where their customers are located. The second sets the minimum rate at 15 percent of profits. Trump, after returning to power this year, withdrew the United States from the agreement and threatened retaliation against any country that applied Pillar 1 to American companies. Pillar 2 is applied by some 60 countries including Brazil, Britain, Canada, Japan, Switzerland and members of the European Union.
Bloomberg
28-06-2025
- Business
- Bloomberg
G-7 Countries Agree to ‘Side by Side' Tax Deal for US Companies
The US and fellow Group of Seven nations signed off on an agreement aimed at averting a global tax war, by creating a 'side-by-side' system that would exempt US companies from some elements of an existing global agreement. As part of the deal, US officials agreed to remove a provision from President Donald Trump's tax-cut bill that would have increased taxes on the US income of non-US-based businesses and individuals. Known as Section 899, it came to be called the 'revenge tax' because it would increase tax rates only for countries whose tax policies Washington deems discriminatory.
