Global Tax Pact’s Profit Reallocation Rules Pose Challenges (3)

Companies could face some hurdles tracking transactions under new draft rules to determine where profits should be reallocated under the global tax deal.

Although the rules aim for simplicity, companies might find some elements to be difficult, said Will Morris, deputy global tax policy leader at PwC.

The deal—struck last October and backed by nearly 140 countries—would change where a portion of the largest multinationals’ profits are taxed. The Organization for Economic Cooperation and Development, which has led negotiations, asked stakeholders Friday for feedback by Feb. 18 on a draft of rules addressing revenue sourcing—part of the plan known as ...