Key Points
- Over 145 countries have agreed to amend the 2021 global minimum corporate tax deal.
- The update addresses the Trump administration’s concerns that the original deal penalized U.S. companies.
- The 15% global minimum tax will remain in place. The new agreement includes carve-outs to align the rules with U.S. tax law.
- U.S. Treasury Secretary Scott Bessent called the deal a “historic victory.”
More than 145 countries have agreed to update the global minimum corporate tax deal, a major move that addresses key concerns from the Trump administration. The original 2021 agreement, designed to ensure large multinational companies pay at least a 15% tax regardless of where they operate, has now been amended to be more favorable to U.S. businesses.
When President Trump took office, he declared that the original deal would have “no force or effect” in the United States. He worried that it would penalize American companies and give foreign governments too much power.
The updated agreement includes carve-outs and simplifications that align the global rules more closely with existing U.S. tax laws.
U.S. Treasury Secretary Scott Bessent called the new deal a “historic victory.” He said it will protect American workers and businesses and preserve the benefits of U.S. tax credits for research and investment. “This agreement represents a historic victory in preserving U.S. sovereignty,” he said in a statement.
The original deal, negotiated by the Biden administration, had already been implemented by more than 65 countries. It required nations to charge a 15% corporate tax or impose an additional tax on companies that book profits in low-tax jurisdictions.
The Trump administration had threatened to retaliate by imposing tariffs on any country that used the deal to levy tariffs on U.S. firms.
This revised agreement, which followed Washington’s pressure on holdout countries, helps stabilize the entire framework. It solidifies global support for the 15% minimum tax while ensuring that American companies are not unfairly targeted.
