Virus-Era Tax Planning Qualms Fuel Hope for Global Guidance

Multinationals struggling with tax planning amid pandemic shutdowns and an economic downturn are hoping an OECD-led effort could help prevent future tax disputes with authorities around the world.

The Organization for Economic Cooperation and Development is talking to 137 countries about crafting guidance on virus-related issues companies face with their transfer pricing—the way multinationals value the transactions between their entities. That potential guidance could help set an international approach for how tax authorities and companies should handle pandemic-related issues.

If tax authorities can find common ground, that could prevent years of companies and governments wrangling over the tax treatment of ...