The world’s leading economies have agreed a deal to spare the US’s largest companies from paying more corporate tax overseas, throwing into doubt the status of the biggest global tax deal in over a century.
The agreement between Washington and other members of the G7 group of leading countries could fundamentally alter a landmark 2021 accord to set up a global minimum tax to crack down on avoidance by multinationals.
The G7 said on Saturday it had agreed to a “side-by-side solution” of taxation that would exempt American companies from some parts of the new global tax regime because of the taxes they pay in the US.
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