Cross-border Tax Talks

One Big Beautiful Podcast, Part 3: Return of the G7 

Doug McHoney (PwC’s International Tax Services Global Leader) is joined by Pat Brown, an international tax partner and Co-Leader of PwC’s Washington National Tax Services practice and former US Treasury’s Associate International Tax Counsel. In part three of Doug’s three-part OBBBA discussion with Pat, they discuss the newly enacted OB3 reconciliation law, focusing on its permanent corporate and individual tax provisions, the recalibration of bonus depreciation, Section 174 expensing and Section 163(j); the Senate’s redesign of GILTI, FDII and BEAT; Inflation Reduction Act rollbacks; Treasury’s last-minute removal of Section 899; and the G7’s surprise accord intended to exempt US-parented groups from Pillar Two’s IIR and UTPR while elevating QDMTTs and compliance simplification. They map the procedural and legislative steps still needed, potential timing gaps, and why multinational groups must keep Pillar Two compliance front-of-mind.  

• 00:10 - Welcome and guest introduction; ‘One Big Beautiful Bill’ trilogy setup 
• 02:05 - C-suite takeaway - OB3 delivers ‘permanent’ certainty and ends sunset drama 
• 05:14 - Inflation Reduction Act incentives curbed; orphans saved; Section 163(j) overhaul 
• 10:30 - International focus: Senate rewrites GILTI, FDII and nudges BEAT rate 
• 12:50 - GILTI makeover - expense-apportionment relief, higher rate, 90% FTC limit, QBAI pulled 
• 19:05 - FDII 2.0: no QBAI haircut, interest/R&D not allocated, benefit made permanent 
• 22:15 - BEAT update: structural status quo with rate lifted to 10.5 % 
• 23:00 - What was not in the final Act: Section 899 pulled; surprise sets stage for G7 deal 
• 27:00 - G7’s four principles: IIR/UTPR carve-out, level-playing-field pledge, simplification, credits 
• 36:30 - What’s next? Path to Inclusive-Framework guidance and national legislation—timing risks 
• 40:40 - Compliance realities: QDMTTs persist; US vs non-US MNC exposure 
• 46:00 - Provision challenges, potential Section 899 revival, and closing takeaways

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