OECD still sees “100% commitment” to complete global tax pact by Reuters

PARIS (Reuters) – The Organization for Economic Co-operation and Development (OECD) is yet to see full commitment from countries seeking a global tax pact on highly profitable multinationals, its tax chief said, after months of delays and hesitation from some big countries. .

Officials from nearly 130 countries and jurisdictions missed a mid-year deadline to finalize the terms of an international treaty that reallocates taxing rights across borders, mainly for big U.S. digital companies, leaving its future in limbo.

The pact, the first of a two-pillar cross-border corporate tax overhaul agreed in 2021, aims to replace one-sided taxes on digital services with new rules for sharing the taxing rights of companies such as Google and Alphabet’s Amazon.com (NASDAQ: ): (NASDAQ: ) and Apple (NASDAQ: ).

“There is 100 percent commitment among members to do this,” OECD fiscal director Manal Corwin told reporters.

“The sense of urgency is high and certainly getting something done before the end of the year would be a priority of mine,” she added.

Washington said India, China and Australia remain supportive of US demands for alternative ways of calculating transfer pricing.

Meanwhile, countries have started implementing the second pillar of the 2021 global tax deal, under which they agreed to set a minimum corporate tax rate of 15 percent or apply an additional tax on the profits of large multinationals that reserve in countries with lower rates.

As part of implementing the second pillar, a first wave of 19 countries signed on Thursday or committed to sign a treaty that allows developing countries to tax some intra-company payments that might otherwise be carried out with little or no tax, the OECD said. .