OECD Tax Plan Favors Countries With More Tangible Assets (1)

Countries where multinationals have high levels of substantive economic activity—such as employees and physical assets—could stand to lose less revenue than others under the global tax deal, according to details released Monday.

Last year’s pact saw nearly 140 countries agree to overhaul global tax rules, including reallocating a portion of the largest multinationals’ profits to the countries where they make sales—known as Amount A.

Up to now, details had not been released describing which countries would give up the profits that will be taxed elsewhere under Amount A. Without a mechanism to decide which countries cede profits, companies would face ...