Daily Tax News Summary
The Group of Seven (G7) finance ministers have endorsed a “side-by-side” approach to the OECD’s 15 per cent global minimum tax. According to multiple newspapers dated 28-30 June 2025, the compromise removes so-called top-up levies for U.S. (and, per one report, U.K.) multinationals, letting those companies pay tax solely in their home jurisdiction. The move responds to recent U.S. legislative proposals and will now be discussed at the OECD.
Summary for Taxpayers
- G7 statement of 28 June backs a side-by-side system in place of top-up taxes.
- U.S. multinationals would be taxed only at home on both domestic and foreign income.
- Some coverage says U.K. firms receive the same treatment.
- The deal reflects changes in the U.S. international tax system contained in President Trump’s draft “One, Big, Beautiful Bill.”
- OECD members must still approve any exemption.
Key Developments
Global minimum tax: G7 endorses 'side-by-side' system replacing top-up levies; US, UK firms exempted
- Source: Times of India (https://timesofindia.indiatimes.com/business/international-business/global-minimum-tax-g7-endorses-side-by-side-system-replacing-top-up-levies-us-uk-firms-exempted/articleshow/122138937.cms)
- Key Facts:
- Headline states G7 has endorsed a “side-by-side” system.
- The approach replaces top-up levies under the Pillar Two regime.
- The same headline notes “US, UK firms exempted.”
- Quote: Headline: "Global minimum tax: G7 endorses 'side-by-side' system replacing top-up levies; US, UK firms exempted" (Times of India, 30 Jun 2025).
G7 agrees to exempt US multinationals from global minimum tax
- Source: Hürriyet Daily News (https://www.hurriyetdailynews.com/amp/g7-agrees-to-exempt-us-multinationals-from-global-minimum-tax-210871)
- Key Facts:
- "The Group of Seven nations said on June 28 they have agreed to exempt U.S. multinational companies from a global minimum tax imposed by other countries."
- The agreement is "a win for President Donald Trump's government."
- Side-by-side solution means firms are "only be taxed at home, on both domestic and foreign profits."
- Arrangement linked to "recently proposed changes to the U.S. international tax system" in Trump's draft bill.
- U.S. Treasury Secretary Scott Bessent signalled a coming deal on 26 June.
- Section 899, a so-called "revenge tax," is still under debate.
- Quote: "The deal will see U.S. companies benefit from a 'side-by-side' solution under which they will only be taxed at home, on both domestic and foreign profits, the G7 said in a statement." (Hürriyet Daily News, 29 Jun 2025)
G7 agrees to exempt US multinationals from global minimum tax
- Source: The Business Times (https://www.businesstimes.com.sg/international/g7-agrees-exempt-us-multinationals-global-minimum-tax)
- Key Facts:
- G7 statement released by Canada confirms exemption of U.S. MNCs.
- Side-by-side system could "provide greater stability and certainty in the international tax system moving forward."
- G7 "looked forward to 'expeditiously reaching a solution' acceptable to all at the OECD."
- Quote: "The side-by-side system could 'provide greater stability and certainty in the international tax system moving forward', it added." (Business Times, 29 Jun 2025)
G7 exempts US from applying minimum tax deal
- Source: POLITICO.eu (https://www.politico.eu/article/g7-exempt-united-states-apply-minimum-tax-deal/)
- Key Facts:
- Headline reports that G7 will not require the United States to apply the Pillar Two top-up tax.
- Quote: Headline: "G7 exempts US from applying minimum tax deal" (POLITICO.eu, 30 Jun 2025)
G7 agrees compromise with US over global minimum tax for firms
- Source: The Malaysian Reserve (https://themalaysianreserve.com/2025/06/30/g7-agrees-compromise-with-us-over-global-minimum-tax-for-firms/)
- Key Facts:
- Article headline notes a “compromise” between G7 and the United States on the minimum tax.
- Quote: Headline: "G7 agrees compromise with US over global minimum tax for firms" (Malaysian Reserve, 30 Jun 2025)
Global minimum tax: G7 endorses 'side-by-side' system replacing top-up levies; US, UK firms exempted (MSN republication)
- Source: MSN (https://www.msn.com/en-in/money/news/global-minimum-tax-g7-endorses-side-by-side-system-replacing-top-up-levies-us-uk-firms-exempted/ar-AA1HChed)
- Key Facts:
- Mirrors Times of India report on endorsement of the side-by-side regime.
- Quote: Headline: "Global minimum tax: G7 endorses 'side-by-side' system replacing top-up levies; US, UK firms exempted" (MSN, 30 Jun 2025)
Prepared by MyTax - mytax.com.ng