G7 countries have agreed with the United States to exempt American and British companies from additional taxes, Reuters reported on Saturday.
Specifically, the group set up a “side-by-side” system in response to the US administration agreeing to remove a tax proposal in response to Section 899 from President Donald Trump’s tax and spending bill, Canada, which holds the G7 presidency, said in a statement.
The U.S. Treasury Department also said the “parallel system” agreed to with the G7 could preserve important gains under an inclusive framework to combat tax base erosion and profit shifting.
“Today’s agreement provides much-needed certainty and stability for these companies after they voiced their concerns,” Treasury Secretary Rachel Reeves said, adding that further work is needed to combat aggressive tax planning and evasion.