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Group Calls for Changes to Global Tax Pact’s Safe Harbor

Aug. 23, 2022, 9:14 PM

A mechanism to limit how much of a multinational’s profit goes to some countries under the global tax deal should be redesigned, the National Foreign Trade Council said in a letter to the OECD.

Amount A of the global tax agreement would reallocate a portion of the largest multinationals’ profits to the market jurisdictions where they have sales. A July draft of the rules detailed a measure that would prevent double counting of certain profits: a marketing and distribution safe harbor, which would limit how much profit a market jurisdiction may get.

“Unfortunately, the ...