OECD Rules on Minimum Tax Are Too Complex, Advisory Group Says

The OECD’s model rules to implement a global minimum tax are too complex and some provisions could distort how the tax is calculated, the organization’s main business advisory group said Thursday.

The model rules to implement the 15% minimum corporate tax—Pillar Two of the OECD’s 137-nation global tax agreement—could lead to “an administrative and compliance struggle” and “significantly increased uncertainty and instability” for tax authorities and taxpayers, said Business at OECD, or BIAC. The OECD should consider amending the rules to address some specific problems, BIAC said in a letter to the officials who are formulating the rules.

Among other ...