Latest news with #OECDGlobalTaxDeal
LeMonde
4 hours ago
- Business
- LeMonde
Trump forces the rest of the world to exempt US companies from global tax on multinationals
Once again, the threat worked. By brandishing in recent weeks the prospect of a new tax on foreign companies – dubbed the "revenge tax" – the United States secured a major concession from other G7 countries on a tax issue that has irked Donald Trump since his return to the White House: the taxation of multinationals, and more specifically, the 15% global minimum corporate tax adopted in 2021 by 140 countries under the aegis of the Organization for Economic Cooperation and Development (OECD). Already implemented in 2024 across the European Union as well as in the United Kingdom, Canada and Japan, this tax was seen as a first step in combating unfair tax competition among states. Eager to share this American victory, US Treasury Secretary Scott Bessent announced it on Thursday, June 26, on the social network X. "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 wrote. "(…) OECD Pillar 2 taxes [that is, the 15% global minimum tax] will not apply to US companies." Le Monde was able to confirm this information on Friday, 27 June, via both France's Ministry of Finance and the OECD, as the G7 finalized a communiqué seen by the newspaper.
Fibre2Fashion
9 hours ago
- 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)
The Advertiser
a day ago
- Business
- The Advertiser
Super funds spared billions after US axes 'revenge tax'
Australian superannuation funds are breathing a sigh of relief after the US dropped a so-called "revenge tax" on foreign investors. The super industry had been ringing alarm bells over section 899 of President Donald Trump's proposed "big beautiful bill", which would have raised taxes by up to 15 percentage points on foreign entities in retaliation for "unfair taxes" imposed on the US by other countries. US Treasury Secretary Scott Bessent on Friday revealed the section would be removed from the bill after a deal was reached with the Group of Seven major industrialised nations, allowing it to drop a global minimum tax rate. "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 posted on the social media platform X. "OECD Pillar Two taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and 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." Australia had been an enthusiastic supporter of the OECD Pillar Two agreement, which sought to implement a minimum global tax rate of 15 per cent and thereby limit multinationals from minimising taxes paid in Australia by shifting profits offshore. The US withdrawal from the project further complicates federal government efforts to ensure multinationals pay their fair share of tax. Prime Minister Anthony Albanese welcomed the removal of section 899, noting he raised the issue with Mr Bessent during a meeting at the recent G7 summit in Canada. "This would adversely impact on Australian investment if it had been implemented, particularly on investment from superannuation companies," he told reporters in Sydney. "And one of the things that we held earlier this year in Washington DC was a roundtable of Australian investment funds who are willing and keen to invest in the United States - just one way in which the Australia-US economic relationship is an important one." The US news was met with a sigh of relief from the $4.2 trillion Australian superannuation industry, which would have been particularly exposed to the tax, given it holds almost $700 billion worth of US assets. Modelling conducted for the Association of Superannuation Funds of Australia by consulting firm Mandala found it could have cut $3.5 billion from returns over the first four years. "This is a really welcome step from the US treasury secretary and the superannuation sector is monitoring developments closely," said ASFA chief policy officer James Koval. "There's still a way to go - the amendments need to be made by lawmakers; there are a number of other amendments under consideration. "This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved." Treasurer Jim Chalmers also raised Australia's concerns about the tax during a phone call with Mr Bessent on Wednesday, later telling reporters he was hopeful of a positive outcome. "We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress," he said. In a speech in June, Future Fund chair Greg Combet said US investments were a less attractive proposition for the sovereign wealth fund, in part because of the proposed tax hike contained in Mr Trump's "big beautiful bill". Australian superannuation funds are breathing a sigh of relief after the US dropped a so-called "revenge tax" on foreign investors. The super industry had been ringing alarm bells over section 899 of President Donald Trump's proposed "big beautiful bill", which would have raised taxes by up to 15 percentage points on foreign entities in retaliation for "unfair taxes" imposed on the US by other countries. US Treasury Secretary Scott Bessent on Friday revealed the section would be removed from the bill after a deal was reached with the Group of Seven major industrialised nations, allowing it to drop a global minimum tax rate. "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 posted on the social media platform X. "OECD Pillar Two taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and 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." Australia had been an enthusiastic supporter of the OECD Pillar Two agreement, which sought to implement a minimum global tax rate of 15 per cent and thereby limit multinationals from minimising taxes paid in Australia by shifting profits offshore. The US withdrawal from the project further complicates federal government efforts to ensure multinationals pay their fair share of tax. Prime Minister Anthony Albanese welcomed the removal of section 899, noting he raised the issue with Mr Bessent during a meeting at the recent G7 summit in Canada. "This would adversely impact on Australian investment if it had been implemented, particularly on investment from superannuation companies," he told reporters in Sydney. "And one of the things that we held earlier this year in Washington DC was a roundtable of Australian investment funds who are willing and keen to invest in the United States - just one way in which the Australia-US economic relationship is an important one." The US news was met with a sigh of relief from the $4.2 trillion Australian superannuation industry, which would have been particularly exposed to the tax, given it holds almost $700 billion worth of US assets. Modelling conducted for the Association of Superannuation Funds of Australia by consulting firm Mandala found it could have cut $3.5 billion from returns over the first four years. "This is a really welcome step from the US treasury secretary and the superannuation sector is monitoring developments closely," said ASFA chief policy officer James Koval. "There's still a way to go - the amendments need to be made by lawmakers; there are a number of other amendments under consideration. "This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved." Treasurer Jim Chalmers also raised Australia's concerns about the tax during a phone call with Mr Bessent on Wednesday, later telling reporters he was hopeful of a positive outcome. "We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress," he said. In a speech in June, Future Fund chair Greg Combet said US investments were a less attractive proposition for the sovereign wealth fund, in part because of the proposed tax hike contained in Mr Trump's "big beautiful bill". Australian superannuation funds are breathing a sigh of relief after the US dropped a so-called "revenge tax" on foreign investors. The super industry had been ringing alarm bells over section 899 of President Donald Trump's proposed "big beautiful bill", which would have raised taxes by up to 15 percentage points on foreign entities in retaliation for "unfair taxes" imposed on the US by other countries. US Treasury Secretary Scott Bessent on Friday revealed the section would be removed from the bill after a deal was reached with the Group of Seven major industrialised nations, allowing it to drop a global minimum tax rate. "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 posted on the social media platform X. "OECD Pillar Two taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and 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." Australia had been an enthusiastic supporter of the OECD Pillar Two agreement, which sought to implement a minimum global tax rate of 15 per cent and thereby limit multinationals from minimising taxes paid in Australia by shifting profits offshore. The US withdrawal from the project further complicates federal government efforts to ensure multinationals pay their fair share of tax. Prime Minister Anthony Albanese welcomed the removal of section 899, noting he raised the issue with Mr Bessent during a meeting at the recent G7 summit in Canada. "This would adversely impact on Australian investment if it had been implemented, particularly on investment from superannuation companies," he told reporters in Sydney. "And one of the things that we held earlier this year in Washington DC was a roundtable of Australian investment funds who are willing and keen to invest in the United States - just one way in which the Australia-US economic relationship is an important one." The US news was met with a sigh of relief from the $4.2 trillion Australian superannuation industry, which would have been particularly exposed to the tax, given it holds almost $700 billion worth of US assets. Modelling conducted for the Association of Superannuation Funds of Australia by consulting firm Mandala found it could have cut $3.5 billion from returns over the first four years. "This is a really welcome step from the US treasury secretary and the superannuation sector is monitoring developments closely," said ASFA chief policy officer James Koval. "There's still a way to go - the amendments need to be made by lawmakers; there are a number of other amendments under consideration. "This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved." Treasurer Jim Chalmers also raised Australia's concerns about the tax during a phone call with Mr Bessent on Wednesday, later telling reporters he was hopeful of a positive outcome. "We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress," he said. In a speech in June, Future Fund chair Greg Combet said US investments were a less attractive proposition for the sovereign wealth fund, in part because of the proposed tax hike contained in Mr Trump's "big beautiful bill". Australian superannuation funds are breathing a sigh of relief after the US dropped a so-called "revenge tax" on foreign investors. The super industry had been ringing alarm bells over section 899 of President Donald Trump's proposed "big beautiful bill", which would have raised taxes by up to 15 percentage points on foreign entities in retaliation for "unfair taxes" imposed on the US by other countries. US Treasury Secretary Scott Bessent on Friday revealed the section would be removed from the bill after a deal was reached with the Group of Seven major industrialised nations, allowing it to drop a global minimum tax rate. "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 posted on the social media platform X. "OECD Pillar Two taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and 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." Australia had been an enthusiastic supporter of the OECD Pillar Two agreement, which sought to implement a minimum global tax rate of 15 per cent and thereby limit multinationals from minimising taxes paid in Australia by shifting profits offshore. The US withdrawal from the project further complicates federal government efforts to ensure multinationals pay their fair share of tax. Prime Minister Anthony Albanese welcomed the removal of section 899, noting he raised the issue with Mr Bessent during a meeting at the recent G7 summit in Canada. "This would adversely impact on Australian investment if it had been implemented, particularly on investment from superannuation companies," he told reporters in Sydney. "And one of the things that we held earlier this year in Washington DC was a roundtable of Australian investment funds who are willing and keen to invest in the United States - just one way in which the Australia-US economic relationship is an important one." The US news was met with a sigh of relief from the $4.2 trillion Australian superannuation industry, which would have been particularly exposed to the tax, given it holds almost $700 billion worth of US assets. Modelling conducted for the Association of Superannuation Funds of Australia by consulting firm Mandala found it could have cut $3.5 billion from returns over the first four years. "This is a really welcome step from the US treasury secretary and the superannuation sector is monitoring developments closely," said ASFA chief policy officer James Koval. "There's still a way to go - the amendments need to be made by lawmakers; there are a number of other amendments under consideration. "This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved." Treasurer Jim Chalmers also raised Australia's concerns about the tax during a phone call with Mr Bessent on Wednesday, later telling reporters he was hopeful of a positive outcome. "We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress," he said. In a speech in June, Future Fund chair Greg Combet said US investments were a less attractive proposition for the sovereign wealth fund, in part because of the proposed tax hike contained in Mr Trump's "big beautiful bill".
New York Post
2 days ago
- Business
- New York Post
Treasury Secretary Scott Bessent asks Congress to strip ‘revenge tax' from Big Beautiful Bill
Treasury Secretary Scott Bessent asked Republicans in Congress on Thursday to remove the so-called 'revenge tax' from President Trump's 'big, beautiful' bill. The provision would grant Trump the authority to tax foreign holdings of US investments as a way to retaliate against countries imposing new taxes on US companies operating overseas. Bessent argued that the provision, known as Section 899, was no longer necessary after the Trump administration reached a deal with G7 nations at last week's summit to exempt US companies from a 15% global corporate minimum tax championed by the Biden administration. Advertisement '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,' the Treasury secretary wrote on X. 'President Trump paved the way for this historic achievement.' Tax writers on Capitol Hill welcomed Bessent's announcement and said the tax would be taken out of the bill. REUTERS 'OECD Pillar 2 taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and months,' Bessent added. 'I want to thank my G7 counterparts for their partnership and collaboration towards achieving this historic outcome.' Advertisement '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.' The massive piece of legislation is currently working its way through the Senate. Sen. Mike Crapo (R-Idaho), the top Republican on the Senate Finance Committee, said the revenge tax provision would be stricken from the bill. 'At the request of @SecScottBessent and in light of this joint understanding to preserve US tax sovereignty and allow US tax laws to co-exist with the Pillar 2 regime, we will remove proposed tax code Section 899 from the One Big Beautiful Bill Act, and we look forward to active engagement with Treasury on these important issues,' Crapo wrote on X. Advertisement House Ways and Means Committee Chairman Jason Smith (R-Mo.) called the deal a 'major victory for American workers.' Some on Wall Street feared that the provision would discourage global investment in the US. The Senate's version of the revenge tax had been projected to raise more than $50 billion in revenues over 10 years, which would've helped defray the cost of other spending in the bill. Trump has urged Congress to pass the bill by July 4. Advertisement Trump wants Congress to pass his 'big, beautiful' bill by July 4. AP Bessent said the agreement struck with G7 partners ' provides greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond.' 'By reversing the Biden Administration's unwise commitments, we are now protecting our Nation's authority to enact tax policies that serve the interests of American businesses and workers,' he added. 'We are also preserving our tax base, preventing the loss of over $100 billion in American taxpayer dollars according to Treasury estimates and the non-partisan Joint Committee on Taxation.' 'The Trump Administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans. We will defend our tax sovereignty and resist efforts to create an unlevel playing field for our citizens and companies.'
France 24
2 days ago
- Business
- France 24
US Treasury signals G7 deal excluding US firms from some taxes
"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 social media posts. Nearly 140 countries struck a deal in 2021 to tax multinational companies, an agreement negotiated under the auspices of the Organisation for Economic Co-operation and Development (OECD). This deal has two "pillars," the second of which sets a minimum global tax rate of 15 percent. "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. US President Donald Trump has pushed back on the global tax agreement, with Bessent on Thursday pointing to advances on that front. "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 program spending for tax cuts. Section 899 has been dubbed a "revenge tax," allowing the government to impose levies on firms with foreign owners and on investors from countries deemed to impose unfair taxes on US businesses. The clause sparked concern that it would inhibit foreign companies from investing in the United States.
