The American and colleague group of seven nations have achieved an agreement to prevent the global tax war by introducing the tax system “side”.
This new arrangement would liberate American societies from some elements of an existing global agreement.
“Revenge tax” excluded
The key part of this agreement included US officials who agreed to remove section 899 from President Donald Trump’s Tax Act,
This provision, often referred to as “revenge tax”, would increase the income taxes and individuals from countries from countries whose tax policy is considered to be discriminatory.
The system side by side could “provide greater stability and certainty in the international tax system that is moving forward,” said the advanced economy of the G-7 on Saturday.
G-7 supports us in tax interviews
Within the agreement, other G-7 members will support the US attitude in ongoing negotiations with a group of 20 countries and the organization for economic cooperation and development organizing global interviews on the income tax, some proposals based on the US.
G-7 officials said that they are looking forward to it to come up with a solution that is “acceptable and implemented to all”, according to the statement.
Digital service taxes remain partially solved
Although some progress has been made, the question of “digital services” remains only partially solved. Some countries are currently collecting these taxes from American technology companies, including META Platforms Inc. and Amazon.com Inc.
According to the G-7 statement, the effort to set up a system side by side will include “constructive dialogue on the taxation of the digital economy and the maintenance of the tax sovereignty of all countries”.
US Finance Minister Scott Bessnt said on Thursday that he had asked the Senate and the leadership of the Chamber of Deputies to remove Section 899 from the so-called one Great Beautiful Act on the Act after ensuring the support of the G-7 for side by side. The Republicans of the Senate removed the section in the latest version of the Tax Act.
(Tagstotranslate) Global Tax War (T) Agreement on G-7 (T) of American Company (T) Digital Services Tax (T) of LEGAL ENTER (T) G7 Agree
