Global Tax Accord Secures U.S. Sovereignty Amid Revisions

Over 145 countries amend the global minimum corporate tax agreement of 2021 to address U.S. concerns, ensuring multinational companies are not penalized. The updated framework, led by the OECD, aligns U.S. minimum tax laws with global standards, enhancing tax certainty and protecting American firms.

In a landmark move, more than 145 countries have revised the 2021 global minimum corporate tax agreement, placating Washington's concerns about potential penalties for U.S. multinational firms.

The OECD, driving the initiative, reported the new package retains the 15% global minimum tax framework. It includes simplifications aligning U.S. tax laws with accepted global norms and accommodating previous objections from the Trump administration.

U.S. Treasury Secretary Scott Bessent hailed the accord, underscoring its significance in safeguarding U.S. sovereignty and defending American economic interests. The revised agreement also reaffirms international cooperation in the evolving landscape of taxing digital economies.

(With inputs from agencies.)