G7 backs US proposal to exempt American firms from parts of global tax agreement

The United States and other Group of Seven (G7) nations have agreed to support a proposal that would exempt American companies from certain components of a global tax agreement, the G7 said in a statement on Saturday.

The agreement follows a US proposal aimed at shielding American firms from new international tax charges on the grounds that they already pay equivalent taxes under domestic law.

The G7 stated that the arrangement acknowledges existing US minimum tax regulations and seeks to enhance stability in the international tax framework. US Treasury Secretary Scott Bessent signalled Thursday that a deal is forthcoming among G7 nations allowing US firms to be excluded from certain taxes imposed by other countries.

“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 social media posts.

US President Donald Trump has pushed back on the global tax agreement, with Bessent on Thursday pointing to advances on that front.

“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 program spending for tax cuts.

Section 899 has been dubbed a “revenge tax,” allowing the government to impose levies on firms with foreign owners and on investors from countries deemed to impose unfair taxes on US businesses.

The clause sparked concern that it would inhibit foreign companies from investing in the United States.

With inputs from agencies