OECD Digital Tax Plan Raises New Questions for Companies

The OECD’s new proposal to reallocate multinationals’ profits among countries has left companies with many questions. A central one: Will the rules apply to them?

The plan, released Oct. 9, hasn’t yet gained agreement among countries, and many key details remain to be decided.

Companies in the meantime are wondering how the Organization for Economic Cooperation and Development will determine what part of their revenue would be subject to the rules, how old rules interact with new ones, and how disputes would be resolved.

Under the plan, some of a multinational’s profits would be divided among countries, with the ...