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Withholding Taxes in Global Deal Raise Revenue, Tax Concerns

Oct. 6, 2022, 8:45 AM

Negotiators are considering how part of the global tax deal will treat withholding taxes—with some looking to slow revenue loss, and others looking to stem a proliferation of new tax measures.

If the rules factor revenue collected under withholding taxes into the calculations of how much profit is to be reallocated, developing countries say they stand to lose. But leave the measures out, and companies say they’d face double counting and possible double tax. The withholding tax issue is one of the last remaining questions the OECD-led discussions have to tackle on this part of the deal.

The US sees ...