Africa-Press – Mauritius. US Treasury Secretary Scott Bessent said Thursday that his agency will announce a joint understanding for G7 countries that defends American interests and American companies will not have to pay the Organization for Economic Cooperation and Development (OECD) global tax deal’s pillar taxes.
“On January 20, the President (Donald Trump) issued two Executive Orders instructing Treasury to defend US tax sovereignty, and as a result of President Trump’s leadership we now have a great deal for the American people,” Bessent said on social media.
He noted that OECD Pillar 2 taxes will not apply to US companies, and the Treasury Department will work cooperatively to implement the agreement across the OECD-G20 Inclusive Framework in the coming weeks and months.
“This understanding with our G7 partners provides greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond,” Bessent said.
He stressed that by reversing the Biden Administration’s “unwise” commitments, the US is now protecting its authority to enact tax policies that serve the interests of American businesses and workers.
“We are also preserving our tax base, preventing the loss of over $100 billion in American taxpayer dollars according to Treasury estimates and the non-partisan Joint Committee on Taxation,” he said.
“The Trump Administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans. We will defend our tax sovereignty and resist efforts to create an unlevel playing field for our citizens and companies,” he added.
The OECD global tax deal is a transformative international effort to rebalance corporate taxation.
Pillar one taxes aim to reallocate a share of profits to market countries and are not yet in force, while Pillar two taxes enforce a 15% minimum global tax and are widely adopted by countries.
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