OECD Tax Pact Not Ideal for Developing Countries: UN Official

The OECD global tax agreement doesn’t do enough to maximize developing countries’ taxing rights and may not help nations reach their development goals, a top UN official said Wednesday.

The “exceptionally low” 15% minimum corporate tax rate and the limits on source taxation rights within the two-pillar deal provide little support for developing countries looking to mobilize their resources, Olga Algayerova, executive secretary of the UN Economic Commission of Europe, told the UN’s Forum on Financing for Development.

Developing countries have repeatedly raised concerns that the deal—which began as a multilateral bid at the OECD to raise taxes ...