Trump Confirms America's Withdrawal from Global Tax Agreement

JAKARTA. President-elect of the United States, Donald Trump, has confirmed that the U.S. will withdraw from the global tax agreement, also known as the Two-Pillar Solution, designed by the OECD/G-20.

The agreement includes the imposition of a 15% global minimum tax, as outlined in Pillar 2. Meanwhile, Pillar 1 establishes rules for the taxing rights of OECD/G-20 countries over digital business activities.

Previously, the U.S. was among the countries that agreed to the OECD/G-20-led global minimum tax framework, which also includes Indonesia.

Threaten U.S Companies

Citing Bisnis.com, Trump stated in his memorandum that all commitments made by the previous administration on behalf of the United States regarding the global tax agreement have no authority or influence.

He argued that the agreement must receive congressional approval before it can be adopted in the U.S.

Furthermore, Trump asserted that the global tax agreement would limit America's ability to implement tax policies that benefit businesses and workers in the country.

As a result, he instructed the U.S. Treasury Secretary to prepare measures to protect the interests of American companies and workers within 60 days.

Indonesia’s Stance

Several countries are currently preparing to implement the global tax agreement, including Indonesia, which will enforce the 15% global minimum tax starting January 1, 2025.

This regulation is outlined in Minister of Finance Regulation (PMK) No. 163 of 2024.

Quoting Bisnis.com, Minister of Finance Sri Mulyani Indrawati stated that Trump's rejection of the Two-Pillar Solution would impact other countries, including Indonesia.

Nevertheless, Sri Mulyani affirmed that Indonesia will respect the U.S. decision. (ASP/KEN)