US companies raise alarms as global tax deal rewrite drags on
14 hours ago
- #US multinationals
- #OECD negotiations
- #global tax
- US multinational companies express concerns over slow OECD negotiations on global minimum tax framework.
- Companies fear high compliance costs if a deal exempting parts of Pillar Two isn't reached by year-end.
- A 'side-by-side' system was proposed to separate US taxes from the 15% global minimum tax, leading to the removal of Section 899 ('revenge tax').
- Businesses urge clarity soon to avoid unnecessary compliance investments.
- House Ways and Means Committee member Rep. Ron Estes receives worried calls from companies about the UTPR safe harbor expiration.
- US Chamber of Commerce highlights urgency among companies for clear tax rules.
- Concerns arise that countries may delay negotiations until after Trump's term for a more favorable administration.
- EY's Ray Beeman notes a 'waiting game' strategy among some nations.
- Pressure mounts on Congress and Treasury to secure a deal, possibly reviving Section 899.
- Treasury sets a Dec. 31 deadline for OECD countries to agree, coinciding with the expiration of a temporary tax rule.
- Senate shows reluctance to revive the revenge tax, citing potential negative impacts on foreign investment.