Glitch in Global Tax Rules Leaves Companies Guessing (Correct)

A discrepancy in the OECD-led 15% global minimum tax rules has multinational companies unsure about how to record adjustments to their financial statements, and potentially exposed to an unexpected tax bill.

The confusion centers around which year companies should “book” a tax adjustment to income—in the present year or the year it was incurred—on their global minimum tax return, according to tax practitioners.

Companies now filing their minimum tax returns for 2024, the first year the tax applies, say rules governing the tax and subsequent administrative guidance from the OECD seem to give conflicting instructions.

“One of the questions people ...