WASHINGTON (dpa-AFX) - The Trump Administration has reached agreement with more than 145 countries in the OECD/G20 Framework to have U.S.-headquartered companies remain subject to only U.S. global minimum taxes while exempting them from OECD Pillar Two deal.
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 borders.
President Donald Trump had made it clear in his Day One Executive Orders that the Biden Administration's proposed OECD Pillar Two deal would have no force or effect for the United States.
The agreement protects the value of the U.S. R&D credit and other Congressionally approved incentives for investment and job creation in the United States, fulfilling the shared goal of U.S. leadership in innovation and technological advancement.
This agreement represents a historic victory in preserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach, U.S. Secretary of the Treasury Scott Bessent said in a statement.
Treasury will continue engaging with foreign countries to ensure full implementation of the agreement, build greater international tax stability, and move toward a constructive dialogue on the taxation of the digital economy, he added.
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