Global Reallocation Tax Rules Can Be Simplified Later, OECD Says

Computations to reallocate taxing rights to markets under a global treaty might be simplified over time, according to one senior official from the OECD.

The Organization for Economic Co-operation and Development in a meeting Monday said most countries agree to its latest version of the multilateral convention (MLC) to introduce an Amount A measure that reallocates taxing rights over the profits of multinational companies. This includes tax certainty elements such as enhanced access to mutual agreement procedures (MAP).

“I think there’s a difference between the complexity of getting your head around the MLC, which is certainly significant, as opposed to ...