OECD Likely to Follow EU Treatment of US Min Tax, Official Says

The EU’s decision about how the global tax deal will treat the US global minimum tax rules likely will be a bellwether for how the rest of the countries involved would decide the issue, an OECD official said Monday.

The Biden administration has tried to raise the rate of the United States’ global intangible low-taxed income rules, or GILTI, and apply it to each country where a company operates—bringing it closer in line with the income inclusion rule under the global deal’s 15% minimum tax, Pillar Two. But the legislation has stalled in the Senate.

The EU’s pending minimum tax ...