G7 exempts U.S. corporations from global minimum tax — details
G7 countries agreed not to impose a global tax on U.S. corporations, and in return, the U.S. will drop punitive tax measures against partners.
Photo: Government of Canada
On June 28, G7 finance ministers approved a shift to a “parallel” model for applying the global minimum tax, under which U.S. multinational corporations are exempt from topping up to the standard 15% rate.
The decision is outlined in a joint statement released by Canada, which currently holds the presidency. The document acknowledges that the existing U.S. GILTI regime provides a comparable level of taxation and can be credited.
According to a Reuters report, U.S. Treasury Secretary Scott Bessent asked Congress on June 26 to remove Article 899 from the "Big Beautiful" tax bill promoted by Donald Trump. That article proposes a 5 percentage point annual tax increase on transactions with jurisdictions deemed “discriminatory.”
The New York Times estimates that this measure could have brought over $100 billion to the U.S. budget over ten years.
Both sides note that the compromise reduces the risk of tax conflicts, simplifies administration for businesses, and allows for further rule development within the OECD framework.
The G7 plans to present a detailed implementation plan for the “parallel” scheme at the upcoming G20 summit in July.
