PARIS, Sept 19 (Reuters) - The Organisation for Economic Cooperation and Development (OECD) is urging countries to finalize a global tax pact aimed at multinational corporations, following delays and hesitations from major nations. The international treaty, which seeks to reallocate taxing rights primarily from U.S. digital giants like Google, Amazon, and Apple, had a mid-year deadline that was missed.
OECD tax director Manal Corwin emphasized that there is a '100% commitment' among member countries to conclude the agreement, highlighting a strong sense of urgency to achieve this by the end of the year.
Despite this commitment, the U.S. has faced challenges with countries like India, China, and Australia, which are resisting some of its demands regarding transfer pricing calculations. Meanwhile, the implementation of the second pillar of the 2021 tax deal is underway, which includes a 15% minimum corporate tax rate.
The OECD reported that 19 countries have signed or committed to a treaty allowing developing nations to tax certain intra-company payments that were previously minimally taxed.
This global tax initiative is significant as it aims to create a more equitable tax system for multinational corporations, impacting economies worldwide.