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OECD Details Calculation of Taxable Profit Under Global Pact (1)

Feb. 18, 2022, 4:22 PMUpdated: Feb. 18, 2022, 6:24 PM

Multinationals on Friday got more details on how to calculate their profits, under part of a global agreement that would change where they’re taxed.

Nearly 140 countries joined an agreement last October that would see a portion of the profits of the largest multinationals reallocated—known as Pillar One—and create a 15% effective minimum corporate tax rate—known as Pillar Two.

The OECD is seeking feedback on a draft document released Friday outlining the tax base calculations under Pillar One’s Amount A, which deals with reallocation. Amount A calls for calculating a global profit figure for a multinational using its financial accounts—from ...