Overview

• G7 members have proposed a side-by-side system that excludes American companies from applying the OECD’s 15% minimum corporate tax rule.
• In exchange, the United States committed to withdraw Section 899 retaliation measures from its major spending bill.
• The nonbinding agreement seeks to stabilize the international tax framework and avert threatened tariffs of up to 50% on EU goods.
• Final implementation hinges on approval by the 38-member OECD and the development of detailed rules for the side-by-side system.
• British finance minister Rachel Reeves said the deal provides certainty for U.K. businesses that had feared additional levies under Section 899.