The OECD Global Minimum Tax Deal: What to Expect

The Organization for Economic Cooperation and Development (OECD) recently released details and proposed legislation on its global minimum tax plan. However, questions still linger about the plan’s details and the practicality of its proposed timeline.

What future developments could we expect to occur as a result of the OECD global minimum tax deal?

On today’s episode of the Taxgirl podcast, Kelly is joined by George Salis to talk about the OECD’s proposed global minimum tax plan. George is the principal economist and tax policy advisor of Vertex Inc. George has over 25 years of experience in international trade and taxation compliance, tax planning and controversy, fiscal regulation, and tax economics consulting.

Listen to Kelly and George discuss the OECD global minimum tax plan:

Kelly and George discuss why the global minimum tax plan was created and how the OECD’s plans for global minimum taxes have changed over the years.
The OECD’s proposed legislation would change how many other nations have implemented their minimum tax rates. Would the proposed plan’s framework include these nations directly affected by the deal?
By now, most nations have signed on to the plan, so what does George believe is the next step? George offers his input and mentions how COVID-19 could affect factors related to the proposed legislation.
What are the differences in economic challenges and obstacles affecting the United States as compared to other countries that will be influenced by this tax plan? Kelly and George discuss how these countries may choose to move forward, or whether they would look to the US as an example for guidance.
George believes that certain critical contingencies that have to have to be set in place for a multinational tax convention to take place, and explains how each of them would relate to this process.
How would this tax agreement influence the business world with regards to economic competition? Does George believe this change would artificially increase economic competition or decrease it, and if so, how?
The agreement has two pillars, and much media attention has focused on Pillar Two and its impact on companies in and outside the U.S. George discusses his opinions on this, how these pillars would be addressed, and how time may influence their impact.
Kelly and George share their thoughts on the proposed agreement regarding the imposition of digital service taxes on U.S. companies.
What would George tell tax practitioners and individuals to look out for next, as important future developments that may arise regarding this tax plan?

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and, hopefully, keep others from getting into them.

You can find out more about Kelly here, and you can follow her on Twitter, Facebook, Instagram, and LinkedIn.

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