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Global Tax Deal Withholding Issue Worries Developing World

Aug. 16, 2022, 7:48 PM

The possibility that withholding taxes could limit the revenue countries receive under part of the global tax deal is “highly concerning,” the Group of 24 developing countries said Tuesday.

“G24 is of the considered view that any consideration of withholding taxes in Amount A will lead to erosion of existing taxing rights and will make Pillar One unattractive and meaningless for the developing countries,” according to a statement from the group.

The 2021 global agreement’s Amount A would reallocate a portion of the largest multinationals’ profits to be taxed in the market jurisdictions where they make sales.

Countries haven’t yet ...