Germany G7 supports compromise with the USA on global minimum tax
The G7 countries support a compromise with the USA in the dispute over an international minimum tax agreement for large corporations. The agreement means that US companies would be exempt from the global minimum tax itself, but would be subject to tax in a parallel US system, according to a statement from the Canadian G7 presidency. There was agreement that the regulation proposed by Washington would ensure progress in the fight against international profit shifting.
29.06.2025, 17:05
SDA
After taking office, US President Donald Trump declared the global minimum tax for large companies in the US to be ineffective. The White House sees the global tax agreement as an inadmissible encroachment on national sovereignty over finances and taxes. The minimum tax is part of a global reform of corporate taxes to which around 140 countries had signed up. According to the agreement, all internationally active companies with an annual turnover of more than 750 million euros must pay at least 15 percent tax. The regulation is independent of where the profits are generated.
Federal Finance Minister Lars Klingbeil (SPD) welcomed the compromise: "The agreement reached by the G7 makes it possible for us to continue the fight against tax havens, tax evasion and tax dumping". The USA would no longer stand in the way of global minimum taxation, and planned punitive measures against European companies were off the table. "This means that OECD and US minimum taxes can coexist."
