The Group of Seven Leading World Economies (G7) has agreed to exclude US transnational corporations from the global minimum corporate tax. This is stated in a statement published on 28 June on the website of the US Treasury Department. Now such companies will pay income tax exclusively under American law, including income received abroad.
Initially, the idea of a global tax was enshrined in the OECD initiative, which was supported by about 140 countries in 2021. The main goal is to fight offshore tax evasion. The reform envisaged the introduction of a minimum income tax rate of 15%, regardless of the jurisdiction of incorporation of the parent company. Key provisions of the second phase of the reform, known as Pillar 2, include mechanisms to allow countries to collect the missing tax from multinational companies if their effective tax rate in other countries is below the threshold. However, the G7 agreed that U.S. corporations would not be subject to these rules. Their tax burden will be determined solely by US laws, where the rate is 21%.
Experts link this decision to the domestic political and economic situation in the United States. With a national debt of over $37 trillion and the cost of servicing it approaching $1 trillion a year, Washington cannot afford to lose part of its tax revenues. In addition, Donald Trump does not support tax increases, betting on business support through lowering the FRS refinancing rate.
However, the decision is yet to be approved by the OECD.
