On June 28, 2025, the Group of Seven (G7) nations agreed to exempt U.S. multinational companies from the global minimum tax. This decision represents a significant shift in international tax policy. It aligns with potential changes in the U.S. tax system, particularly the "One Big Beautiful Bill Act" (OBBBA).
The G7's move allows U.S. companies to be taxed solely within the United States on both domestic and foreign profits. This approach is known as "side-by-side" and aims to provide stability in the international tax system. The global minimum tax, established by the OECD in 2021, sets a 15% minimum tax rate for multinational corporations.
Treasury Secretary Scott Bessent played a key role in negotiating the exemption. The exemption for U.S. companies raises questions about the future of the global tax framework. The implications of this agreement will likely influence future discussions on international tax policy.