Latest news with #Section899
Fibre2Fashion
8 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)
CNN
19 hours ago
- Business
- CNN
The ‘revenge tax' is dead before it even started
The Treasury Department and Congress on Thursday moved to kill a so-called revenge tax that was set to raise taxes on foreign investment and had spooked Wall Street and global business leaders. Treasury Secretary Scott Bessent on Thursday announced a deal with G7 partners that will exclude US companies from some global taxes in exchange for the US dropping Section 899 from Republican's 'One Big Beautiful Bill Act.' Bessent said in a post on X that he would ask Congress to remove Section 899 from the budget bill. Senator Mike Crapo and Rep. Jason Smith, who co-chair the joint committee on taxation, said in a statement Thursday that following Bessent's request, they would remove Section 899 from the bill. Section 899 was a tax code tucked in to President Donald Trump's budget bill that would have raised taxes on the income earned from US assets held by individuals or businesses in other countries with taxes the US perceived as unfair for American businesses. The provision would 'facilitate penalty taxes on foreign companies operating in the US if their home country is deemed to have a 'discriminatory' tax system,' analysts at Citi said in a note. The tax code was considered a 'revenge' tax because it was designed to retaliate against a global tax framework agreed upon in 2021 by the Biden administration and the Organization for Economic Cooperation and Development, according to Mark Luscombe, principal federal tax analyst at Wolters Kluwer. Former Treasury Secretary Janet Yellen had negotiated a tax agreement with other OECD countries that included setting a global minimum tax rate of 15%. Republicans had opposed the agreement and thought it was unfair, arguing it ceded authority on taxation, Luscombe said. The 'revenge tax' also was set to retaliate against digital services taxes, or taxes on US tech companies that provide services to users in other countries. Digital services taxes were perceived as 'discriminatory' by the Trump administration, said James Knightley, chief international economist at ING. Trump had previously signed an executive order on his first day in office announcing that tax deals agreed upon between the Biden administration and the OECD were null. Bessent's announcement leaves room for how the United States and other countries might negotiate on taxes. 'The Trump Administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans,' Bessent said in his post on X. 'We will defend our tax sovereignty and resist efforts to create an unlevel playing field for our citizens and companies.' The so-called revenge tax, which had stirred debates on Wall Street and law firms across the Atlantic, is moot before it even went into effect. There had been back-and-forth debates in recent weeks about the implications of Section 899 and whether it would push global investors away from the United States. The provision had sent shivers up Wall Street's spine as it appeared to be another protectionist policy that would penalize global investors who put their money in the United States. 'Great concern had been expressed by Wall Street and affected stakeholders about the enactment of Section 899 and its impact on foreign investment in the United States, particularly in view of its complexity, potential scope of application and compliance obligations,' attorneys at law firm Holland & Knight said in a note. 'Those concerns have been alleviated for now.' International business groups were in Wasington in recent weeks negotiating with lawmakers. Jonathan Samford, CEO of the Global Business Alliance, which opposed Section 899, told CNN the provision would have 'squandered opportunity and more investment' and contributed to 'further isolation.' 'We're very pleased that President Trump and the administration have pursued this negotiation, and as a result, called for withdrawal of this punitive and discriminatory provision,' he said. 'I commend Chairman Smith and Chairman Crapo for focusing on making the United States the most competitive it can be.' Republicans this week had begun hinting that Section 899 might be negotiable. Director of the National Economic Council Kevin Hassett said in an interview with Fox Business on Wednesday that Section 899 might not be included in the final budget bill. 'You can try to retaliate, but it's probably better to work out an agreement than just have a tax fight, just like we're having tariff fights,' Luscombe said.
The Sun
a day ago
- Business
- The Sun
Barclays CEO welcomes possible end to Trump retaliatory tax
THE CEO of Barclays has welcomed indications that U.S. Republicans may scrap the Section 899 retaliatory tax proposal from their tax and spending bill. 'The developments on 899 are welcome progress and a significant outcome for a great many UK companies like Barclays that invest in the US and support economic growth in both countries,' Barclays CEO C.S. Venkatakrishnan told Reuters in an emailed statement. It is unusual for a British bank CEO to criticise a specific policy of U.S. President Donald Trump. Multinational companies with operations in the United States have been lobbying through industry groups against Section 899, warning about the potential impact on their investment plans in the country. Section 899 would have enabled President Donald Trump to retaliate against countries that impose taxes on U.S. firms under a 2021 global tax agreement that Trump considers unfair. The agreement is 'another important sign of the close working relationship between the UK Chancellor and US Treasury Secretary which is critical for UK and US businesses,' Venkatakrishnan said.
Yahoo
a day ago
- Business
- Yahoo
Barclays CEO hails possible scrapping of Trump retaliatory tax
LONDON (Reuters) -The CEO of Barclays has welcomed indications that U.S. Republicans may scrap the Section 899 retaliatory tax proposal from their tax and spending bill. "The developments on 899 are welcome progress and a significant outcome for a great many UK companies like Barclays that invest in the US and support economic growth in both countries," Barclays CEO C.S. Venkatakrishnan told Reuters in an emailed statement. It is unusual for a British bank CEO to criticise a specific policy of U.S. President Donald Trump. Multinational companies with operations in the United States have been lobbying through industry groups against Section 899, warning about the potential impact on their investment plans in the country. Section 899 would have enabled President Donald Trump to retaliate against countries that impose taxes on U.S. firms under a 2021 global tax agreement that Trump considers unfair. The agreement is "another important sign of the close working relationship between the UK Chancellor and US Treasury Secretary which is critical for UK and US businesses," Venkatakrishnan said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Barclays CEO hails possible scrapping of Trump retaliatory tax
LONDON, June 27 (Reuters) - The CEO of Barclays (BARC.L), opens new tab has welcomed indications that U.S. Republicans may scrap the Section 899 retaliatory tax proposal from their tax and spending bill. "The developments on 899 are welcome progress and a significant outcome for a great many UK companies like Barclays that invest in the US and support economic growth in both countries," Barclays CEO C.S. Venkatakrishnan told Reuters in an emailed statement. It is unusual for a British bank CEO to criticise a specific policy of U.S. President Donald Trump. Multinational companies with operations in the United States have been lobbying through industry groups against Section 899, warning about the potential impact on their investment plans in the country. Section 899 would have enabled President Donald Trump to retaliate against countries that impose taxes on U.S. firms under a 2021 global tax agreement that Trump considers unfair. The agreement is "another important sign of the close working relationship between the UK Chancellor and US Treasury Secretary which is critical for UK and US businesses," Venkatakrishnan said.
