Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

OECD still sees '100% commitment' to finalise global tax pact

Published 09/19/2024, 12:05 PM
Updated 09/19/2024, 05:31 PM
© Reuters. The logos of Amazon, Apple, Facebook and Google are seen in a combination photo from Reuters files.    REUTERS/File Photos
GOOGL
-
AAPL
-
AMZN
-

PARIS (Reuters) - The Organisation for Economic Cooperation and Development (OECD) still sees total commitment from countries seeking to wrap up a global tax pact on highly profitable multinationals, its head of tax said, after months of delays and hesitation by some big countries.

Officials from nearly 130 countries and jurisdictions missed a mid-year deadline to finalise the terms of an international treaty that reallocates taxing rights across borders mainly on U.S. big 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 unilateral digital services taxes with new rules for sharing taxing rights on companies such as Alphabet (NASDAQ:GOOGL)'s Google and Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).

"There is 100% commitment among members to get it done," OECD tax director Manal Corwin told journalists.

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

Washington has said that India, China and Australia remain hold-outs on U.S. demands over alternative ways to calculate transfer pricing.

© Reuters. The logos of Amazon, Apple, Facebook and Google are seen in a combination photo from Reuters files.    REUTERS/File Photos

Meanwhile, countries have begun implementing the second pillar of the 2021 global tax deal, under which they agreed to set a 15% minimum corporate tax rate or apply a top-up levy for big multinational s booking profits in countries with lower rates.

As part of implementation of 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 outbound intra-company payments that otherwise could be made with little or no tax, the OECD said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.