Victory for Donald Trump and the Big Tech USA. The seven major economies in the world have reached an agreement to prevent the largest stars and stripes companies from paying more taxes abroad. A move welcomed by Washington and other countries but which could radically modify the agreement on the global minimum tax of 2021. The agreement reached at the G7 “will facilitate further progress in the stabilization of the international tax system”, including a “constructive dialogue” on safeguarding the “tax sovereignty of all countries”, is underlined in a note from the presidency of the Canadase shift.
Now the agreement will be discussed in the coming weeks to the OECD, the international organization that four years ago reached the historic agreement on the ‘Global Minimum Tax’ to end the tax avoidance practices of multinationals, in particular the Big Tech US. For the Secretary General, Mathias Cormannthe G7 decision is “an important milestone in international fiscal cooperation”. While for Manal Corwinresponsible for the OECD tax division, the G7 declaration is not binding and any proposal will have to be approved by 147 countries of the organization as it was in 2021. “The G7 alone cannot make this decision,” he warned. The Minister of Economy and Finance satisfied satisfied Giancarlo Giorgetti who defined the agreement an “honorable compromise”. “It protects our companies from automatic retaliation from the United States,” he said. The minister referred to the so -called ‘Revenge Tax’, an amendment to Trump’s expenditure law that would allow the United States to claim against taxes abroad deemed discriminatory and that the Treasury Secretary Scott Bessent He has already announced will be eliminated to the announcement of the ceiling at the G7. In his statement, the Canadian presidency explained that in recent months “Bessent had expressed the concern of the United States regarding the rules of second pillar” agreed at the OECD and G20 level in the field of tax avoidance and profit shifting, that is, the practice of multinationals, digital species, to choose the jurisdiction with the most favorable rates to record their profits. The US secretary continues the G7 declaration, “had proposed a parallel solution in which the US control groups would have been exempt from the inclusion rule of profits and the rule on non -taxed profits, by virtue of the minimum taxation rules existing in the USA to which they are subject”.
After the negotiations – explains the Statement – and taking into account the announcement of the USA to remove from the ‘One Big Beautiful Bill Act’ of Trump ‘the provisions that authorized a “taxation of retaliation on foreign investments,” there is the shared intention that a parallel system can keep intact important steps forward “in facing the tax base and profit shifting and providing greater stability to the international taxation system from here on ». For the administration of The Donald it is a success that will save the US companies 100 billion dollars in taxes abroad. Just yesterday the American president had returned to threaten the European Union after stopping negotiations with Canada. “With the digital tax the EU will not come out well, like Canada,” the president had warned in the oval study accusing the Ottawa government of having acted “in a stupid way”.