Latest news with #USTaxReform
Yahoo
20 hours ago
- Business
- Yahoo
G7 agrees to avoid higher taxes for US, UK companies
The United States and the Group of Seven countries have agreed to support a proposal that would exempt US companies from some components of an existing global agreement, the G7 says. The group has created a "side-by-side" system in response to the US administration agreeing to scrap the Section 899 retaliatory tax proposal from President Donald Trump's tax and spending bill, it said in a statement from Canada, the head of the rolling G7 presidency. The G7 said the plan recognises existing US minimum tax laws and aims to bring more stability to the international tax system. United Kingdom businesses are also spared higher taxes after the removal of Section 899 from Trump's tax and spending bill. The Government of Canada has published the @G7 statement on global minimum taxes. Read it here: — Finance Canada (@FinanceCanada) June 28, 2025 The UK government said businesses would benefit from greater certainty and stability following the agreement. Some UK businesses had in recent weeks said they were worried about paying substantial additional tax due to the inclusion of Section 899, which has now been removed. "Today's agreement provides much-needed certainty and stability for those businesses after they had raised their concerns," finance minister Rachel Reeves said in a statement, adding that more work was need to tackle aggressive tax planning and avoidance. G7 officials said that they look forward to discussing a solution that is "acceptable and implementable to all". In January, through an executive order, Trump declared that the global corporate minimum tax deal was not applicable in the US, effectively pulling out of the landmark 2021 arrangement negotiated by the administration of his predecessor Joe Biden with nearly 140 countries. He had also vowed to impose a retaliatory tax against countries that impose taxes on US firms under the 2021 global tax agreement. This tax was considered detrimental to many foreign companies operating in the US.
Globe and Mail
21 hours ago
- Business
- Globe and Mail
G7 agrees to exempt U.S. companies from higher taxes
The United States and the Group of Seven nations have agreed to support a proposal that would exempt U.S. companies from some components of an existing global agreement, the G7 said in a statement on Saturday. The group has created a 'side-by-side' system in response to the U.S. administration agreeing to scrap the Section 899 retaliatory tax proposal from President Donald Trump's tax and spending bill, it said in a statement from Canada, the head of the rolling G7 presidency. The G7 said the plan recognizes existing U.S. minimum tax laws and aims to bring more stability to the international tax system. Opinion: The G7 is dead – time to move on to the G6 U.K. businesses are also spared higher taxes after the removal of Section 899 from Mr. Trump's tax and spending bill. Britain said businesses would benefit from greater certainty and stability following the agreement. Some British businesses had in recent weeks said they were worried about paying substantial additional tax due to the inclusion of Section 899, which has now been removed. 'Today's agreement provides much-needed certainty and stability for those businesses after they had raised their concerns,' Britain's finance minister Rachel Reeves said in a statement, adding that more work was needed to tackle aggressive tax planning and avoidance. G7 officials said that they look forward to discussing a solution that is 'acceptable and implementable to all.' In January, through an executive order, Trump declared that the global corporate minimum tax deal was not applicable in the U.S., effectively pulling out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries. He had also vowed to impose a retaliatory tax against countries that impose taxes on U.S. firms under the 2021 global tax agreement. This tax was considered detrimental to many foreign companies operating in the U.S.
South China Morning Post
04-06-2025
- Business
- South China Morning Post
What's up with Section 899 of Trump's ‘big beautiful bill' and its ‘retaliatory' taxes?
With the market taking a closer look at the 'One Big Beautiful Bill Act' after it was narrowly passed by the US House of Representatives on May 22, a clause called Section 899 has caught the attention of investors worldwide by including a new set of 'retaliatory' taxes on inbound foreign investment. As the bill now awaits Senate consideration, there are growing concerns that some of the most sweeping changes to the tax treatment of foreign capital in the US in decades could lead to a sharp reduction in foreign investment in American assets. In this explainer, the Post breaks down some key points in Section 899, including which countries are targeted, and its potential impact on US assets. What is Section 899? Titled 'Enforcement of remedies against unfair foreign taxes', Section 899 is a new provision that targets investments by countries that have 'discriminatory and extraterritorial taxes' on US businesses. Taxes that have been named include the digital-services taxes, diverted-profits tax, and undertaxed-profits rules. Governments, corporations, private foundations or individuals from these countries will be charged an additional 5 percentage points of withholding tax rate each year on their US income, potentially taking the rate up to 20 per cent, until the 'unfair tax' is removed. Echoing the spirit of the 'Mar-a-Lago Accord' , Section 899 reflects Washington's increasing readiness to leverage US dominance in the global capital market to confront what it views as the unfair treatment of American businesses abroad.
South China Morning Post
04-06-2025
- Business
- South China Morning Post
‘Big, scary moment'? What's up with Section 899 and its ‘retaliatory' taxes?
With the market taking a closer look at the 'One Big Beautiful Bill Act' after it was narrowly passed by the US House of Representatives on May 22, a clause called Section 899 has caught the attention of investors worldwide by including a new set of 'retaliatory' taxes on inbound foreign investment. As the bill now awaits Senate consideration, there are growing concerns that some of the most sweeping changes to the tax treatment of foreign capital in the US in decades could lead to a sharp reduction in foreign investment in American assets. In this explainer, the Post breaks down some key points in Section 899, including which countries are targeted, and its potential impact on US assets. What is Section 899? Titled 'Enforcement of remedies against unfair foreign taxes', Section 899 is a new provision that targets investments by countries that have 'discriminatory and extraterritorial taxes' on US businesses. Taxes that have been named include the digital-services taxes, diverted-profits tax, and undertaxed-profits rules. Governments, corporations, private foundations or individuals from these countries will be charged an additional 5 percentage points of withholding tax rate each year on their US income, potentially taking the rate up to 20 per cent, until the 'unfair tax' is removed. Echoing the spirit of the 'Mar-a-Lago Accord' , Section 899 reflects Washington's increasing readiness to leverage US dominance in the global capital market to confront what it views as the unfair treatment of American businesses abroad. 03:01 US appeals court allows Donald Trump's tariffs to stay in effect US appeals court allows Donald Trump's tariffs to stay in effect Which countries will be targeted? Measures in Section 899 could take effect as soon as January 1 if the bill is enacted by October 3, according to an analysis of its key tax proposals by multinational law firm Skadden.
