Developing Nations Urged to Do Cost-Benefit Study of OECD Tax Deal

Two intergovernmental groups are advising developing countries to undertake a careful cost-benefit analysis of the OECD-led global tax deal.

The South Centre and West African Tax Administration Forum (WATAF) warned of revenue reductions for developing countries under the global deal, agreed to by more than 138 countries in 2021. The agreement calls for a reallocation of companies’ residual profits to market jurisdictions, known as Pillar One, and establishes a global minimum tax, known as Pillar Two.

The two groups, which focus on developing countries, released an outcome statement Wednesday from a July event attended by officials responsible for tax policy, ...