Tax Deal Needs Buy-In From Developing Nations

After years of negotiations led by the Organization for Economic Cooperation and Development, more than 130 jurisdictions backed a deal last month to overhaul how and where multinational companies are taxed. Now countries are gearing up to implement a deal that will reallocate the profits of some of the world's largest companies and set a 15% minimum global tax rate. For the deal to succeed, it will need the support of not just the world's biggest economies but also from developing nations. And that may require politicians in these countries to be willing to nix existing tax treaties with their neighbors that violate the new deal's tenets. That's according to Mary Baine, director of tax projects at the African Tax Administration Forum, an intergovernmental organization that coordinates tax policy across the continent. She spoke to Bloomberg Tax’s Hamza Ali for our weekly podcast Talking Tax about what developing countries countries will need to do to get ready for the new rules over the next two years. Have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.