OECD says new multinational taxation system could yield up to US$100 billion annually


The increase is equivalent to four per cent of governments’ current corporate income tax revenues. The OECD said 100 “large [multinational enterprise] groups” will account for over half the reallocated profit from proposals that allow a country to tax firms with sales within its borders, even if they don’t have a corporate presence. (The Logic)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: In January, officials from 137 countries agreed to negotiate on the changes and finalize a deal by the end of the year. Today’s analysis incentivizes them to stay engaged in those talks, since most governments would see some revenue gains, with “low and middle-income economies” particularly benefitting. But the document also teases a bigger payoff for a second set of policies that ensure firms pay a minimum level of tax, in part by reducing rate differences between jurisdictions; countries like Ireland have been accused of providing illegal state aid to attract investment by reducing multinationals’ tax burdens. However, the end-of-year timeline only applies to the first set of changes; participating governments said last month the technical details of the second group of proposals still need to be worked out before adoption negotiations begin.