Countries Make Progress on Nagging OECD Tax Agreement Issues

Countries are closer to resolving some of the key remaining issues holding back final rules for a global agreement rewriting how multinationals are taxed, according to a senior US official.

In October, more than 130 jurisdictions signed up to a two-pillar agreement to change how multinationals are taxed. Pillar One of the plan is reallocating a portion of the profits of the largest, most profitable businesses in the world to countries where they make sales.

Countries had hoped to complete negotiations on detailed model rules for Pillar One this summer, but the talks stalled as countries haggled over several issues. ...