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The United States and the United Kingdom have reached a groundbreaking agreement at this year’s G7 Summit. As part of international tax cooperation, the two nations have agreed to introduce a new global tax framework called “Side-by-Side” to ease the burden on large corporations. This development was reported by Reuters.
Under this agreement, the United States has withdrawn the controversial “Section 899” of its proposed tax law, which was introduced during the previous Trump administration. This move is being viewed as a positive step in international tax cooperation. UK Finance Minister Rachel Reeves stated that the decision would bring “stability and certainty” to British businesses. She also emphasized the need for greater transparency and balance in the tax framework. The US Treasury Department noted that this agreement will strengthen and stabilize the global tax framework. It is particularly significant in maintaining the continuity of the Base Erosion and Profit Shifting (BEPS) initiative. Although the agreement has been finalized among G7 nations, it now awaits final approval through discussions with the 147 member states of the OECD and the G20. The 51st G7 Summit was held in Canada from June 15 to 17 this year.
