US-based multinational companies will be exempt from global tax deal

By FATIMA HUSSEIN

WASHINGTON (AP) — U.S. multinational corporations will be exempted from paying more corporate taxes overseas in a deal finalized by the Organization for Economic Cooperation and Development.

The OECD announced Monday that nearly 150 countries have agreed on the plan, initially crafted in 2021, to stop large global companies from shifting profits to low-tax countries, no matter where they operate in the world.

The amended version excludes large U.S.-based multinational corporations from the 15% global minimum tax after negotiations between President Donald Trump’s administration and other members of the Group of Seven wealthy nations.

OECD Secretary-General Mathias Cormann said in a statement that the agreement is a “landmark decision in international tax co-operation” and “enhances tax certainty, reduces complexity, and protects tax bases.”

U.S. Treasury Secretary Scott Bessent called the agreement “a historic victory in preserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach.”

The most recent version of the deal waters down a landmark 2021 agreement that set a minimum global corporate tax of 15%. The idea was to stop multinational corporations, including Apple and Nike, from using accounting and legal maneuvers to shift earnings to low- or no-tax havens.