LONDON: The United States and the Group of Seven nations have agreed to support a proposal that would exempt US companies from some components of an existing global agreement, the G7 said in a statement on Saturday.

The group has created a `side-by-side` system in response to the US administration agreeing to scrap the Section 899 retaliatory tax proposal from President Trump`s tax and spending bill, it said in a statement.

The G7 said the plan recognises existing US minimum tax laws and aims to bring more stability to the international tax system. UK businesses are also spared higher taxes after the removal of Section 899 from President Donald Trump`s tax and spending bill.

Britain said businesses would benefit from greater certainty and stability following the agreement. Some British businesses had in recent weeks said they were worried about paying substantial additional tax due to the inclusion of Section 899, which has now been removed.-Reuters