No Pillar One Agreement Without US, Warns EU Tax Think Tank

The ratification threshold agreed within the Organization for Economic Cooperation and Development for Pillar One of the global tax deal means that the agreement can’t enter into force without US Congress approval, the EU Tax Observatory think tank said in an assessment issued Thursday.

The July 11 OECD Outcome Statement on Pillar One—which refers to the reallocation for tax purposes of a share of the profits of the world’s largest companies—sets a ratification requirement for 30 signatory jurisdictions representing 60% of multinational groups covered by the deal.

While 17% of covered groups would be Chinese, and 15% from the European ...