The Organization for Economic Co-operation and Development (OECD) Global Tax Deal (Global Tax Deal)
THE PERMANENT REPRESENTATIVE OF THE UNITED STATES TO THE ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
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MEMORANDUM FOR THE SECRETARY OF THE TREASURY
THE UNITED STATES TRADE REPRESENTATIVE
THE PERMANENT REPRESENTATIVE OF THE UNITED STATES TO THE ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
SUBJECT: The Organization for Economic Co-operation and Development (OECD) Global Tax Deal (Global Tax Deal)
The OECD Global Tax Deal supported under the prior administration not only allows extraterritorial jurisdiction over American income but also limits our Nation’s ability to enact tax policies that serve the interests of American businesses and workers. Because of the Global Tax Deal and other discriminatory foreign tax practices, American companies may face retaliatory international tax regimes if the United States does not comply with foreign tax policy objectives. This memorandum recaptures our Nation’s sovereignty and economic competitiveness by clarifying that the Global Tax Deal has no force or effect in the United States.
Section 1. Applicability of the Global Tax Deal. The Secretary of the Treasury and the Permanent Representative of the United States to the OECD shall notify the OECD that any commitments made by the prior administration on behalf of the United States with respect to the Global Tax Deal have no force or effect within the United States absent an act by the Congress adopting the relevant provisions of the Global Tax Deal. The Secretary of the Treasury and the United States Trade Representative shall take all additional necessary steps within their authority to otherwise implement the findings of this memorandum.