Simplify Global Tax Pact’s Scoping Rules, Businesses Say

Global business groups are calling on the OECD to simplify the rules that govern which businesses are in scope for new international tax rules agreed last year.

One group, Business at OECD, an international network that says it represents more than 7 million companies, suggested Wednesday in a comment letter that there should be a carve-out for businesses that have a decentralized business model that means they operate mostly on a domestic-only basis.

In October, more than 130 countries signed up to a two-part agreement that rewrote how multinationals are to be taxed. The first element—Pillar One—of the new rules ...