In a significant move, the U.S. Treasury Department announced on January 5th that it has reached an agreement with over 145 countries, exempting American companies from the OECD's 'Global Minimum Tax'. This tax, set at 15%, aims to curb tax avoidance by multinational corporations. The agreement signifies a crucial understanding that U.S.-based companies will adhere only to the U.S. global minimum tax, sidestepping the OECD's 'Pillar Two' requirements.
Treasury Secretary Scott Besant emphasized the U.S.'s tax sovereignty over its global operations, ensuring that other countries maintain their jurisdiction over domestic business activities. This exemption also safeguards valuable R&D tax credits and other incentives intended to foster investment and job creation within the United States. Notably, American firms will not face additional taxes even if their effective corporate tax rate dips below 15% due to these deductions.
The OECD's global minimum tax framework, effective since January of last year in countries like South Korea, the EU, Japan, and Canada, targets multinational corporations with global sales exceeding 750 million euros. The policy seeks to prevent tax avoidance by levying additional taxes on companies paying less than 15% in their home countries.
This policy was initially perceived as a direct challenge to American tech giants such as Google, Amazon, Meta, and Apple, which operate in multiple countries but typically pay taxes where their servers are located. The U.S. Republican Party opposed the measure, arguing it infringed upon tax sovereignty and discriminated against American businesses.
President Donald Trump, on his first day in office last year, issued an executive order declaring the OECD's global tax agreement void within the U.S., asserting America's sovereignty and economic competitiveness. This recent agreement follows extensive negotiations, building on a prior consensus among G7 nations.
The Treasury Department has committed to ongoing dialogue with international counterparts to ensure the full implementation of this agreement, aiming to enhance the stability of the global tax landscape while engaging constructively on the digital economy's taxation challenges.
Copyright ⓒ 뉴스로드 무단 전재 및 재배포 금지
본 콘텐츠는 뉴스픽 파트너스에서 공유된 콘텐츠입니다.
