People walk around the Financial District in New York City, U.S., November 5, 2025. REUTERS/Angelina Katsanis Purchase LicensingRights

By Leigh Thomas From Reuters

• Summary

• Global tax pact revised to exempt US multinationals
• 15% minimum tax remains, but compliance eased
• Over 65 countries have begun implementing the deal

PARIS, Jan 6 (Reuters) – More than 145 countries have agreed to update a landmark global tax deal, carving out exemptions for U.S. multinationals after Washington pushed back against rules designed to ensure big corporations pay at least 15% tax worldwide.

The U.S. exemptions could reshape how countries enforce the agreement and affect global tax revenues as the impact becomes clearer.

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WHY A GLOBAL MINIMUM TAX?

Major economies have long sought to stop multinationals from shifting taxable profits to low-tax jurisdictions, regardless of where their sales occur.

Increasingly, income from intangible sources such as drug patents, software and royalties has migrated to these jurisdictions, allowing companies to avoid higher taxes in their home countries.

The original deal was expected to generate about $150 billion in new annual revenue, with taxing rights on over $125 billion of profit shifted to countries where multinationals earn income.

The Organisation for Economic Cooperation and Development has since revised its extra revenue estimate to $192 billion, but has not yet factored in the U.S. exemptions.

WHAT WAS THE 2021 GLOBAL DEAL?

Governments agreed in 2021 to set a 15% minimum tax on big multinationals’ overseas profits – the first major overhaul of cross-border tax rules in a generation.

END

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