G7 countries have agreed with the United States to exempt American and British companies from additional taxes, Reuters reported on Saturday.
In particular, the group has created a “side-by-side” system in response to the US administration’s agreement to withdraw its proposal to introduce a tax in response to Section 899 of President Donald Trump’s tax and spending bill, according to a statement from Canada, which chairs the G7.
The US Treasury Department also said that the “parallel system” agreed with the G7 could preserve important achievements within an inclusive framework in the fight against tax base erosion and profit shifting.
“Today’s agreement provides much-needed certainty and stability for these companies after they expressed their concerns,” said Finance Minister Rachel Reeves, adding that work must continue to combat aggressive tax planning and tax avoidance.
