G7 Backs US Proposal to Ease Global Tax Rules for American Companies

Ottawa – The United States and the Group of Seven (G7) nations have agreed to support a proposal that would exempt American companies from certain parts of a global tax deal, the G7 said in a statement on Saturday.

According to the statement released by Canada, which currently holds the G7 presidency, the agreement introduces a “side-by-side” system aimed at bringing stability to the international tax framework. The system comes after the U.S. agreed to drop the Section 899 retaliatory tax proposal that was introduced under former President Donald Trump.

The G7 plan also acknowledges the existing U.S. minimum tax laws and aims to accommodate them within the broader global tax framework.

Officials from G7 countries said they are committed to finding a solution that is “acceptable and implementable to all parties.”

In January, former President Trump signed an executive order rejecting the 2021 global corporate minimum tax deal originally brokered by President Joe Biden with nearly 140 countries. Trump also vowed to impose retaliatory taxes on countries that taxed U.S. companies under the deal.

The new arrangement is seen as a move to prevent tax conflicts and support international companies operating across borders.