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OECD Tightens Rules to Enforce 15% Global Minimum Tax Rate

Dec. 21, 2021, 7:48 PM

Multinational companies hoping to avoid getting hit by a 15% global minimum tax rate will see their options narrowed under new OECD rules.

The release Monday of model legislation from the Organization for Economic Cooperation and Development marked the first chance for companies to see how national tax authorities could implement the 15% rate after nearly 140 countries finalized a deal in October to overhaul the global tax system.

Countries that adopt the minimum tax rules, known as Pillar Two, can apply a top-up tax when companies headquartered within their jurisdictions are paying below the 15% minimum rate elsewhere—under what ...