The first part of a 136-jurisdiction agreement reached in October 2021 would reallocate the right to tax US$125-billion worth of profits based on where companies do business, not just where they’re headquartered. “It’s probably most likely now that we’ll end up with practical implementation from 2024 onwards,” OECD general secretary Mathias Cormann said at the World Economic Forum in Davos on Tuesday. (The Logic)

Talking point: The bloc was aiming to sign a multilateral treaty containing the rules by mid-2022 and enact them starting next year. That makes it more likely that Canada will proceed with its own digital-services tax (DST), the kind of country-specific measure the OECD-led deal is designed to pre-empt. In December 2021, the Liberal government published draft legislation to create the DST, which would take effect from January 2024 if the global measures aren’t in place by then, and remain active until they are. Cormann noted there’s been more progress on the second part of the OECD-led deal, which imposes a global minimum corporate tax rate of 15 per cent. He cited domestic legislation setting that floor in Canada—included in April’s federal budget—the U.K. and EU.