OECD Pillar 2 taxes not to apply to US firms: Scott Bessent

Around 140 nations had concluded an agreement in 2021 to tax multinational companies under the auspices of the Organisation for Economic Cooperation and Development (OECD). This deal has two pillars, the second of which sets a minimum global tax rate of 15 per cent.

"After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests," he said in a series of posts on microblogging platform X.

"OECD Pillar 2 taxes will not apply to US companies," he wrote, adding that officials will work to implement the agreement across the OECD-G20 Inclusive Framework in the coming months.

"Based on this progress and understanding, I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill," Bessent added, referring to a bill currently before US lawmakers that would slash social programme spending for tax cuts.

Section 899 will allow the US government to impose levies on companies with foreign owners and on investors from countries perceived to impose unfair taxes on US businesses.

ALCHEMPro News Desk (DS)