PARIS, Sept 19 (Askume) – The Organisation for Economic Co-operation and Development (OECD) is still looking at countries wanting to impose tighter controls on highly profitable multinationals after months of delays and hesitation, its tax chief said on commitments.
Officials from nearly 130 countries and jurisdictions missed a mid-year deadline to finalise the terms of an international treaty that would reallocate cross-border tax rights to mainly big US digital companies, putting their future at risk.
The agreement is the first of two pillars of a 2021 multinational corporate tax reform that aims to replace a one-sided digital services tax with new rules and give more leverage to Alphabet’s Google (GOOGL.O) and Amazon.To share tax powers with companies like .
“There is a 100% commitment among member countries to get this done,” Manal Corwin, the OECD’s tax director, told reporters.
“The sense of urgency is very high and getting something done before the end of the year is definitely a priority for me,” he added.
India , China and Australia are still refusing to accept US demands for alternative methods of calculating transfer pricing, Washington said .
At the same time, countries have begun implementing the second pillar of the 2021 global tax agreement, under which countries agreed to set a minimum corporate tax rate of 15% or impose an additional tax on profits booked by large multinationals in countries with low tax rates.
The OECD said that as part of the implementation of Pillar 2, on Thursday a first wave of 19 countries signed or committed to sign a treaty that will allow developing countries to tax certain outward intra-company payments that would otherwise be taxable.
