The G7 has reached agreement on the application of the global minimum tax under Pillar Two including the removal of section 899 from the US ‘One Big Beautiful Bill’ – a retaliatory tax provision designed to increase tax on foreign companies operating in the US based around a perception that those countries levy ‘unfair’ taxes against the US (primarily the unilateral digital services taxes most of which are destined to be removed as part of the OECD two pillars). In return the other G7 countries have agreed to exempt US companies from exposure to the Pillar Two minimum global tax rules instead following a parallel ‘side by side’ policy where US rules will co-exist alongside the GloBE rules.
The G7 statement issued by the Canadian Government (currently holding the presidency of the G7) takes a conciliatory approach: ‘there is a shared understanding...
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The G7 has reached agreement on the application of the global minimum tax under Pillar Two including the removal of section 899 from the US ‘One Big Beautiful Bill’ – a retaliatory tax provision designed to increase tax on foreign companies operating in the US based around a perception that those countries levy ‘unfair’ taxes against the US (primarily the unilateral digital services taxes most of which are destined to be removed as part of the OECD two pillars). In return the other G7 countries have agreed to exempt US companies from exposure to the Pillar Two minimum global tax rules instead following a parallel ‘side by side’ policy where US rules will co-exist alongside the GloBE rules.
The G7 statement issued by the Canadian Government (currently holding the presidency of the G7) takes a conciliatory approach: ‘there is a shared understanding...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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