HILL TAX BRIEFING: OECD Releases Profit Reallocation Draft Paper

Countries in which multinational corporations have more “tangible assets” such as employees and physical assets could maintain more revenue under the global tax deal, according to a draft document the OECD released Monday.

The Organization for Econonic Cooperation and Development said implementation of Pillar One of the global deal, which addresses reallocation, will not take effect until 2024 at the earliest.

Under the global tax agreement, corporations would reallocate some of their profits to nations where their sales are made—a total designated as Amount A. The draft contains the first details on which countries would lose revenue as a result ...