The US agreement with members of the G7 Group assumes the release of American companies from some elements of the existing global agreement. In turn, American officials agreed to remove from the draft Budget Act of the US (One Big Beautiful Bill) a provision that was supposed to increase taxes on US and natural persons with headquarters outside the United States – writes Bloomberg.
It is a budget law containing the implementation of many of Donald Trump's election demands, he calls One Big Beautiful Bill.
The record known as Section 899 began to be called “retaliation tax” because it would increase tax rates only in the case of countries whose tax policy Washington considers to be discriminatory, i.e. those that introduce additional taxes to American companies.
Donald Trump withdraws from “retaliation”
The parallel system can “ensure greater stability and confidence in the international tax system in the future,” the G-7 countries stated in the statement on Saturday.
As part of the agreement, other G-7 members will support the US position in negotiations with the G20 Group countries and the organization of economic cooperation and development, which hosted global conversations on corporate taxes.
Group G7 includes the largest developed economies and democracies in the world: the United States, Japan, Germany, Great Britain, France, Italy and Canada.
Trade war. The US has broken negotiations with Canada
On Friday, Donald Trump broke off trade talks with Canada and announced that he would soon announce a new customs rate for this country. The decision to complete the negotiations on customs duties for several months was made after Canada announced the Digital Services Tax, DST), which the US President called “a direct and glaring attack on his country.”
Bloomberg wrote that Canada did not give up plans to introduce DTS despite the aforementioned agreement of the G7 countries on taxes. The Canadian Ministry of Finance decided that the agreement did not cover DST. Ottawa had already announced that she would not stop the start of tax collection.
Source: Bloomberg
