Trump Clears Path for U.S. Firms to Shelter Billions in Offshore Havens

American companies have skirted at least $40 billion in taxes since early 2025 using schemes routed through Malta, Bermuda, and Cyprus, with the White House now moving to ease enforcement.

U.S. companies have avoided at least $40 billion in taxes since the start of 2025 through offshore arrangements.
The Trump administration has taken steps to reduce enforcement against firms using tax havens including Malta, Bermuda, and Cyprus.
The moves reverse or undercut Biden-era efforts to implement a global 15 percent corporate minimum tax.
Malta and Cyprus, both European Union members, feature among the named shelter jurisdictions.
Congressional Democrats are expected to push back, though Republicans hold majorities in both chambers.

The Trump administration has moved to shield U.S. companies from penalties tied to offshore tax schemes, allowing firms to shelter profits in havens including Malta, Bermuda, and Cyprus, according to a report published Thursday by The New York Times.

American companies skirted at least $40 billion in taxes from the start of 2025 through arrangements in those jurisdictions, the Times reported, citing federal data and independent analyses.

The White House action effectively weakens enforcement of a global 15 percent corporate minimum tax agreed to by more than 130 countries under the Biden administration and the OECD framework.

Treasury has signaled it will not penalize companies that route profits through low-tax jurisdictions in defiance of that framework, leaving the $40 billion figure likely to climb through the rest of the fiscal year.

Critics said the policy amounts to a direct subsidy for multinational corporations at the expense of the federal budget. The administration has not publicly detailed the legal basis for the enforcement rollback.

Senate Finance Committee Democrats are expected to demand a briefing from Treasury, with a hearing date not yet confirmed. The committee's next scheduled session is Tuesday.