OECD’S Global Minimum Tax Aims to Protect Countries’ Tax Bases

New international rules could set a minimum tax rate for multinationals as part of the OECD’s project to address concerns about taxation of the digital economy.

The Organization for Economic Cooperation and Development’s May 31 plan outlined approaches it’s considering for adopting a global minimum tax rate on multinational entities, and rules to let countries deny deductions for payments that aren’t subject to at least that minimum rate.

The plan is the second of two “pillars” of work in the OECD’s project to rewrite international tax rules dramatically, driven by rising concern that multinationals, particularly those operating in the digital ...