U.S.-based multinational companies will be exempt from the OECD Pillar Two global minimum tax framework under a new international agreement announced today by the Treasury Department.
In 2021, the Organization for Economic Cooperation and Development unveiled new rules to establish a coordinated minimum corporate tax structure among different nations. The Treasury Department said that under the new deal, the U.S.-based multinationals will remain subject to only U.S. global minimum taxes.
“This side-by-side agreement recognizes the tax sovereignty of the United States over the worldwide operations of U.S companies and the tax sovereignty of other countries over business activity within their own border,” the department said.
