Global Minimum Tax Rule May Prevent US Edge Under G7 Deal

Keeping the US tax system separate from the OECD’s global minimum tax framework won’t give US companies a competitive advantage—yet.

As long as countries continue to adopt a 15% corporate minimum tax locally, known as a qualified domestic minimum top-up tax under the OECD’s Pillar Two framework, US multinationals are unlikely to enjoy a major tax advantage over global competitors, practitioners say.

“Where countries have raised their tax rates to 15% for large companies, or where they’ve implemented QDMTT, in my view, Pillar Two has already done its magic,” Tim Sarson, UK head of tax policy at KPMG, said.