The government of Donald Trump declared, through a memorandum, that the Global Tax Agreement of the Organization for Economic Co-operation and Development (OECD) will not be valid in the United States, nullifying the commitments made by the previous administration, of Joe Biden.
The measure considers the agreement a threat to autonomy, by allowing extraterritorial jurisdiction over US income and restricting tax policies aimed at benefiting national companies and workers.
The objective, according to the text, is to protect North American companies from possible tax retaliation from countries that have joined the pact.
The memorandum determines that authorities notify the OECD about the decision and tasks the Secretary of the Treasury with investigating violations of tax treaties or discriminatory practices against American companies.
The analysis, including suggestions for protective measures, must be presented to Trump within 60 days.
With this initiative, the document says, the government seeks to preserve the economic competitiveness of the United States and reinforce its tax sovereignty, in accordance with national laws.
