OECD Will Keep Working With US Despite Trump’s Tax Deal Threat

The Organization for Economic Cooperation and Development said it will continue its work with the US to support international cooperation in tax that promotes “certainty, avoids double taxation, and protects tax bases.”

The OECD was responding to a Trump administration memo that instructed the US Treasury to tell the OECD that any commitments made by the Biden administration “have no force or effect” in the US.

The Monday memo referred to one part of a tax deal signed by more than 140 countries, including the US, which imposes a minimum 15% corporate tax, known as Pillar Two.

• “There have been concerns raised with us by US representatives about various aspects of our international tax agreement. The democratically elected governments of our Member countries represent the interests of their countries as they see fit,” the organization’s Secretary General Matthias Cormann said in a Tuesday statement.
• The other half of the deal, known as Pillar One, includes a global treaty detailing how countries would reallocate large multinational companies’ profits to countries where they are selling their services. Negotiations over Pillar One are still ongoing.