G7 Agrees to Exempt US Firms from OECD Global Minimum Tax

US Treasury Secretary Scott Bessent announced a forthcoming deal among G7 nations that exempts US firms from the OECD's global minimum corporate tax rate of 15 percent, a key component of the international tax framework agreed upon by nearly 140 countries. This agreement is seen as a significant protection of American tax sovereignty and a positive development after President Trump initially rejected the global tax deal upon taking office. As a result, Bessent has requested Congress to remove Section 899, a proposed retaliatory tax measure targeting foreign investors and companies from countries with perceived unfair tax systems, from current legislative consideration. The Section 899 provision had raised concerns about deterring foreign investment in the US. Officials plan to work towards implementing the agreement more broadly within the OECD-G20 Inclusive Framework in the coming months. This deal marks progress in international tax cooperation while safeguarding US business interests from certain foreign tax liabilities.