Trump: OECD Global Tax Deal Has No Force In US

21 January 2025

President Donald Trump in a memorandum Monday directed the Treasury Secretary and the permanent representative of the US to the OECD to notify the organization that any agreements made by the Biden administration on the global tax deal will have “no force or effect within the United States absent an act by the Congress adopting the relevant provisions” of the deal.

The global tax deal, agreed to in 2021 during the Biden administration by about 140 countries, is made up of two parts: Pillar One, which includes a global treaty detailing how countries would reallocate large multinational companies’ profits to countries where they are selling their services, and a 15% global minimum tax, known as Pillar Two. Dozens of countries have already implemented the minimum tax, while negotiations over Pillar One are ongoing.

Trump also asked the Treasury Secretary and the US Trade Representative to investigate and report back if any countries aren’t in compliance with tax treaties with the US or if they have rules in place or likely to have in place that disproportionately affect US companies.

He asked Treasury to report findings and recommendations within 60 days.

 

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