The United States, along with more than 100 countries, has finalized an agreement exempting American firms from certain foreign taxes — an update that follows Washington's push for exclusions from a global minimum tax.
Countries had struck a deal in 2021 to tax multinational companies, in an agreement negotiated under the auspices of the Organisation for Economic Co-operation and Development (OECD).
The deal contains two "pillars," the second of which sets a minimum global tax rate of 15 percent.
But U.S. President Donald Trump has pushed back on the global tax agreement, saying the proposed pact would have no force or effect for the U.S.
On Jan. 5, the U.S. Treasury Department said that it had worked to "reach agreement with the more than 145 countries in the OECD/G20 Inclusive Framework to have U.S.-headquartered companies remain subject to only U.S. global minimum taxes while exempting them from Pillar Two."
"This side-by-side agreement recognizes the tax sovereignty of the United States over the worldwide operations of U.S. companies and the tax sovereignty of other countries over business activity within their own borders," the Treasury added.
The update came after the G7 nations agreed in June to exempt U.S. multinational companies from a global minimum tax imposed by other countries.
