OECD Tax Pact Solves Big Questions But Technical Details Remain

The OECD-led effort to overhaul how and where multinationals are taxed still has technical details to address before companies understand the full impact of a pact announced last week.

After years of negotiations, officials from 136 jurisdictions last week signed a sweeping agreement that would change where a portion of the largest multinationals’ profits are taxed—known as Pillar One—and create a new global minimum corporate tax rate of 15%—known as Pillar Two.

The Group of 20 finance ministers will meet later this week to advance the agreement ahead of a G-20 leaders meeting at the end of the month, and ...