Beautiful Virgin Islands

Saturday, Aug 22, 2026

Global Tax Rewrite Estimated to Raise $100 Billion Heads to G-20

Global Tax Rewrite Estimated to Raise $100 Billion Heads to G-20

The OECD is preparing to ask the Group of 20 finance ministers for an endorsement of its plans for a global tax overhaul estimated to bring in roughly $100 billion annually.

The Organization for Economic Cooperation and Development is trying to get nearly 140 countries to agree to an overhaul of how the digital economy is taxed. The effort seeks to address concerns that multinationals, particularly tech giants, aren’t paying enough tax in the countries where they have users or consumers.

Data released by the OECD Thursday shows that the plan would bring in more tax revenue for most countries, including both low- and high-income countries.

Those estimates could help negotiators convince the G-20 meeting in Riyadh, Saudi Arabia, starting on Feb. 22 to continue backing the OECD-led effort. Countries are aiming to reach agreement by the end of the year.

Negotiators are hoping the OECD plan will discourage countries from pursuing unilateral tax measures aimed at the digital revenue of tech companies like Facebook Inc. and Amazon.com Inc. France agreed to pause collection of its 3% digital services tax, following U.S. trade threats. French officials have said they’ll replace the tax with the OECD’s proposal if the effort is successful.

The $100 billion overall figure is “an estimate based on certain assumptions about the parameters” of the plan, Grace Perez-Navarro, deputy director of the OECD’s Center for Tax Policy and Administration, told Bloomberg Tax Thursday at a Tax Council Policy Institute conference in Washington.

“We still haven’t decided key parameters, and so it’s a little bit hard,” she said. “But I think it will be helpful at the G-20 to persuade them that this is the right way to go.”

Winners and Losers
Although the plan would likely benefit most countries, the exception will be investment hubs -countries with more than 1.5 times as much inbound foreign investment as their gross domestic product- which stand to lose under the plan, according to the OECD data.

It’s unclear how any particular country will fare, as countries continue to negotiate fundamental design elements of the plan.

The OECD plan drew criticism from a coalition of tax justice groups, which said the impact assessment was proof the global rewrite won’t reach far enough.

“As it stands, the reform proposal would fail to meaningfully address tax avoidance by multinationals and deliver minimal redistribution of taxing rights and will only achieve a small fraction of its objectives,” the Independent Commission for the Reform of International Corporate Taxation said in a statement Thursday. The group includes organizations like the Tax Justice Network and Oxfam, and economists Thomas Piketty and Joseph Stiglitz.

The coalition compared the estimated $100 billion gained under the OECD’s plan to the International Monetary Fund’s estimate that $600 billion is lost each year to corporate tax avoidance.

Assessing Impact
Countries agreed Jan. 31 to work on a plan that will include two parts—Pillars One and Two.

Pillar One of the plan would give countries with large consumer markets a greater share of multinationals’ profits. The revenue impact could vary depending on how much profit is reallocated, what share of companies’ profits are targeted, and which companies are affected.

Amount A, the section of Pillar One that reallocates profits, would have the largest impact on a small group of companies. More than half of reallocated profits under Amount A will come from about 100 multinationals, the OECD said.

Pillar Two, a global minimum tax, will offer most of the revenue boost, the OECD said. But which countries it helps most will depend on the design of the plan and the order in which its rules are applied. Key details of Pillar Two are stil being negotiated—including the rate of the minimum tax and how it would be assessed.

The revenue difference between the two pillars might force the business community to think more about Pillar Two’s design and policy basis, said Jeff VanderWolk, a partner at Squire Patton Boggs in Washington.

Decisions Ahead
Countries have agreed to work on reallocation rules in Pillar One that would apply to highly profitable, consumer-facing companies. The OECD rules would exclude industries such as mining and most financial services, while applying to such business models as selling digital goods and services and franchises.

Details of Pillar One that are still being decided could change how countries’ revenues are effected. For example, the data released Thursday showed that investment hubs would lose more, and other countries would gain more, if Amount A applied to profits above a 10% margin, versus a 20% margin.

The OECD said its analysis didn’t take into account the possible impact of a U.S. proposal to make Pillar One a safe harbor, which would allow companies to choose whether the new rules or the current system of taxation would apply to them.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
×