Catenaa, Thursday, January 08, 2026- The United States and more than 100 other countries finalized an agreement exempting American multinational corporations from certain foreign taxes under the OECD’s 15% global minimum tax framework.
The deal removes US-based companies from obligations under the Pillar Two global levy negotiated during the Biden administration. It recognizes US sovereignty over its multinationals’ worldwide operations while allowing other countries to maintain tax control over domestic businesses.
Treasury Secretary Scott Bessent said the agreement, reached in coordination with Congress, ensures US companies are subject only to domestic global minimum taxes.
Earlier, Bessent secured G-7 support to remove a “revenge tax” provision that could have imposed additional levies on foreign jurisdictions targeting US firms.
US officials argued that American corporations already face minimum taxation through a 15% federal corporate minimum tax and international levies ranging from 12.6% to 14% on foreign profits.
The exemption also addresses disputes over digital taxes imposed by the EU and other nations, which Washington claims unfairly target US technology companies.
The global minimum tax, designed to prevent profit shifting to low-tax countries, applies to multinationals with revenue above €750 million and aims for a minimum 15% effective tax rate in every jurisdiction. OECD estimates the program could generate $220 billion in global revenue.
Congressional Republicans praised the agreement, stating retaliatory tax measures would remain a possibility if other nations delay implementation.
The move is expected to protect US companies from additional foreign levies while easing concerns in financial markets over global tax exposure.
