More than 145 countries have agreed to amend a 2021 global minimum corporate tax agreement, addressing concerns in the United States that the rules could penalise US multinational companies.
The Organisation for Economic Cooperation and Development said the fresh package preserves the 15 per cent global minimum tax framework designed to ensure large multinationals pay a baseline tax wherever they operate.
The update includes simplifications and carve-outs to align US minimum tax laws with global standards, accommodating earlier objections raised by US President Donald Trump's administration.
OECD's Australian head Mathias Cormann said in a statement the arrangement "enhances tax certainty, reduces complexity and protects tax bases".
'No force or effect' in US
US President Donald Trump declared in an executive order when he took office nearly a year ago that the OECD global minimum tax deal would have "no force or effect" for the US.
Treasury Secretary Scott Bessent said Monday's agreement would ensure that US-headquartered companies would only be subject to US global minimum taxes and preserve benefits of US research and investment tax credits.
"This agreement represents a historic victory in preserving US sovereignty and protecting American workers and businesses from extraterritorial overreach," Bessent said in a statement.
He pledged to continue engagement with other countries on a "constructive dialogue" on taxation of the digital economy, a reference to a second, more difficult pillar of the OECD tax framework.
How does the minimum tax work?
As of October, more than 65 countries had begun implementing the 2021 global tax deal, which requires them to apply a 15 per cent corporate tax or impose a top-up levy on multinationals booking profits in jurisdictions with lower tax rates.
The revised agreement solidifies global backing after G7 countries, including the US, brokered a deal in June exempting some US companies from parts of the original framework.
A broader agreement, reached on Monday after the US pressured holdouts to back the updated arrangement, helps stabilise the global deal.
