Compliance Burden to Stay High Under Global Minimum Tax Deal

Simplification measures in the OECD’s new global minimum tax rules are unlikely to reduce the compliance burden for companies as they determine their tax liabilities under the new system, tax professionals said.

The measures are still too complex, requiring companies to make several adjustments to financial statements, run multiple scenarios, and provide significantly more data than under current rules, they said.

The rules, announced by OECD Jan. 5, introduce a permanent safe harbor—known as the simplified effective tax rate safe harbor—to allow companies to demonstrate that they have no tax liability in a jurisdiction without undertaking a series of detailed ...