Political Hurdles Remain to Reach OECD Global Tax Treaty Deal

Countries are near consensus on a multilateral tax treaty that would reallocate the profits of large companies, and the remaining issues around the convention are “primarily political in nature,” the OECD reiterated Monday.

Nations still disagree over whether to require the adoption of a proposed transfer pricing framework as part of signing the treaty, the organization wrote in a report to the Group of 20 leaders ahead of its summit in Rio de Janeiro.

The transfer pricing component, known as Amount B, seeks to simplify the way companies value certain intercompany transactions. The convention, known as Amount A, seeks ...