OTTAWA: The Group of Seven nations said Saturday they have agreed to exempt US multinational companies from a global minimum tax imposed by other countries — a win for President Donald Trump’s government, which pushed hard for the compromise.
The deal will see US 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 released by Canada, which holds the group’s rotating presidency.
The agreement was reached in part due to “recently proposed changes to the US international tax system” included in Trump’s signature domestic policy bill, which is still being debated in Congress, the statement said.
The side-by-side system could “provide greater stability and certainty in the international tax system moving forward,” it added.
Nearly 140 countries struck a deal in 2021 to tax multinational companies, an agreement negotiated under the auspices of the Organization for Economic Co-operation and Development (OECD).
That agreement, deeply criticized by Trump, includes two “pillars,” the second of which sets a minimum global tax rate of 15 percent.
The OECD must ultimately decide to exempt the US companies from that tax — or not.
The G7 said it looked forward to “expeditiously reaching a solution that is acceptable and implementable to all.”
On Thursday, US Treasury Secretary Scott Bessent had signaled that a “joint understanding among G7 countries that defends American interests” was in the works.
He also asked US lawmakers to “to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill” — Trump’s policy mega-bill.
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.
G7 agrees to exempt US multinationals from global minimum tax
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G7 agrees to exempt US multinationals from global minimum tax
- The deal will see US companies benefit from a “side-by-side” solution under which they will only be taxed at home
US, Ukraine hail ‘productive’ Miami talks but no breakthrough
- Representatives from Ukraine, Russia, and Kyiv’s European allies, held separate talks hosted by US special envoy Steve Witkoff
- Russia's delegation said recent proposed changes to Trump's “20-point plan” to end the war were a non-starter
MIAMI, Florida: US and Ukrainian envoys issued a joint statement on Sunday that hailed “productive and constructive” talks in Miami but did not announce any apparent breakthrough in efforts to end the war with Russia.
Top representatives from both Ukraine and Russia, as well as Kyiv’s European allies, have been in southern Florida over the past several days for a series of separate talks hosted by US President Donald Trump’s special envoy, Steve Witkoff.
The meetings were the latest in a weeks-long diplomatic blitz over plans to end the war, after Washington last month presented a 28-point proposal widely seen as echoing the Kremlin’s demands.
It has since been redrafted following Ukraine and Europe’s involvement, though its contents have not been publicly disclosed.
“Over the last three days in Florida, the Ukrainian delegation held a series of productive and constructive meetings with American and European partners,” Witkoff and Ukraine’s top negotiator, Rustem Umerov, said in separate statements on X.
They said a bilateral US-Ukraine meeting focused on developing and aligning positions on “four key documents” — a “20-point plan,” a “Multilateral security guarantee framework,” a “US Security guarantee framework for Ukraine” and an “economic & prosperity plan.”
“Particular attention was given to discussing timelines and the sequencing of next steps,” they said, without announcing any further meetings.
National security advisers from Kyiv’s European allies “also joined the discussions to align on a shared strategic approach between Ukraine, the United States, and Europe,” the statements added.
Russian envoy Kirill Dmitriev was also in southern Florida and met with the US delegation, which included billionaire real estate developer Witkoff and Trump’s son-in-law Jared Kushner.
Witkoff on Sunday similarly said that the meetings with Dmitriev were “productive and constructive.”
Earlier, the Kremlin said recent proposed changes to the plan to end the war were a non-starter.
Dmitriev “should receive information about what has been developed by the Americans and Europeans” in the plan and report that back to Moscow later, Kremlin’s spokesman Dmitry Peskov told state TV.
Moscow, which invaded Ukraine in February 2022, sees Europe as pro-war and argues that its participation in the talks only hinders them.
War rages on
While little is known of the latest peace plans, Kyiv is likely to be expected to surrender some territory — a prospect resented by many Ukrainians — in exchange for US security guarantees.
Though envoys from both Moscow and Kyiv were in town, the Kremlin had earlier ruled out three-way talks.
Ukrainian President Volodymyr Zelensky earlier described the talks as “constructive” and said they were “moving at a fairly rapid pace.”
He nevertheless cautioned that “much depends on whether Russia feels the need to end the war for real.”
He also hailed this week as “historic” for Ukraine, thanking Europe for pledging $100 billion of funding over the next two years.
Moscow’s troops have been steadily advancing at the eastern front in recent months. Putin on Friday hailed the Russian army’s territorial gains — and threatened more in the coming weeks.
Just over the week, “Russia has launched approximately 1,300 attack drones, nearly 1,200 guided aerial bombs, and 9 missiles of various types” against Ukraine, Zelensky said.
Most of them have pummeled the Black Sea region of Odesa, where relentless strikes wrought havoc on ports, bridges and energy facilities, killing eight people Saturday.
In the eastern Sumy region, Russian troops attempted a breakthrough in an area previously spared from an intense ground offensive. Russian forces forcibly moved 50 people from a local village, said Kyiv.
“Russian invaders have stolen five dozen civilian people, mostly elderly women, from a tiny Ukrainian village Grabovske, right across the state border in the Sumy region,” Foreign Minister Andriy Sybiga said.
Russia made no comment on the matter.
