OECD Treaty Under Global Tax Deal Faces Several Hurdles (1)

A variety of knotty issues remain over a multilateral treaty aimed at implementing a key part of the OECD’s global tax agreement—including disagreements among countries over withholding taxes and digital services taxes, and getting the US to sign on.

The Organization for Economic Cooperation and Development issued a draft treaty that would implement Amount A, the process under Pillar One of the agreement by which a slice of the taxes on large multinational companies’ profits would be reallocated to countries in which they do business but don’t have a major physical presence.

The draft convention is “a great step forward,” ...