Saudi Press

Saudi Arabia and the world
Monday, Mar 23, 2026

‘Historic’ global tax deal on multinationals delayed until 2024

‘Historic’ global tax deal on multinationals delayed until 2024

Some doubt the OECD-brokered agreement, which would levy more tax on the world’s largest firms, will ever be implemented
An international deal that would force the world’s biggest multinational companies to pay a fair share of tax has been delayed until 2024 amid fresh wrangling over the painstakingly negotiated agreement.

Mathias Cormann, the secretary-general of the Organisation for Economic Co-operation and Development (OECD), told the World Economic Forum in Davos, Switzerland, that there were “difficult discussions” taking place that meant the deal could not come into force in 2023, as previously hoped.

Cormann said he remained confident an agreement would eventually be implemented to let countries levy more tax on the world’s largest firms based on the sales generated within their borders.

But the US billionaire investor, David Rubenstein, co-chairman of the Carlyle group, said he doubted whether the OECD-brokered deal would ever happen. “Global tax deals sound great but getting them implemented is very difficult,” he told a Davos session before Cormann’s comments.

The deal – which Cormann called “historic and very important” – has two parts. Pillar 1 involves the reallocation of some profits from major multinationals such as US tech companies to countries where they made their sales, while Pillar 2 brings in a global minimum corporation tax rate of 15%.

Cormann said there were “still some difficult discussions under way with relation to the technical aspects” of Pillar 1.

“We deliberately set a very ambitious timeline for implementation to keep the pressure on and we think that has helped keep the momentum going.

“But I suspect it is probably most likely that we will end up with a practical implementation from 2024 onwards.”

Pillar 1 is facing opposition in the US Congress from Republican senators, and analysts have suggested the deal could fall if the Democrats lose control of the House of Representatives in November’s midterm elections. Rubenstein said he thought the agreement would not happen even if the Democrats keep control of the House.

Cormann refused to comment on political issues, but said the OECD deal would be better for US multinational companies than a proliferation of different tax regimes overseas if countries tried to individually make them pay a fair share.

He was also “very encouraged by the progress” on Pillar 2, and hopeful that EU members will agree to back it. Pillar 1 requires an international treaty to be agreed, while Pillar 2 is implemented through domestic legislation.

Cormann said that once there was a critical mass of countries imposing a minimum level of corporate tax on profits generated in their jurisdictions, it would be very hard for other countries not to follow.

He explained: “Essentially you leave money on the table for other countries to collect, if you don’t align yourself to that global standard.”

James Murray MP, Labour’s shadow financial secretary to the Treasury, said news of the delaywas “incredibly disappointing”.

“Without this deal being in place, we risk missing out on the chance to bring billions of pounds currently lost to large multinationals’ tax dodging back to Britain,” he added.

“The Chancellor needs to use his position to urgently get people back round the negotiating table, and do all he can to make sure this landmark deal is delivered.”

Poland has been holding back support for the EU’s directive to implement Pillar 2, but French finance minister, Bruno Le Maire, said on Tuesday he was confident an agreement would be reached.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Egypt Reaffirms Strong Support for Saudi Arabia as Sisi Condemns Iran’s Gulf Attacks
Saudi Stocks Close Higher as Tadawul Index Gains 0.55% on Broad Sector Strength
Iran Fires Ballistic Missiles Toward Riyadh as Gulf Conflict Intensifies
Barcelona Midfielder Marc Casadó Attracts €40 Million Interest from Saudi Clubs
Strait of Hormuz Tensions Rise as Saudi Arabia Opens Key Air Base to US Forces
Saudi Arabia Confronts Strategic Turning Point as Iran Conflict Redefines Regional Alliances
Saudi Arabia Intercepts Missile as Two Others Land in Remote Area Without Casualties
Saudi Expulsion of Iranian Military Attaché Raises Doubts Over Fragile Riyadh–Tehran Rapprochement
Saudi Arabia’s Strategic East–West Pipeline Gains Global Attention as Energy Routes Face Growing Risks
Iran Reportedly Reduces Strikes on Saudi Arabia Amid Concerns Over Strong Retaliation
Saudi Arabia Criticises Israeli Strikes in Southern Syria Amid Rising Regional Tensions
Egypt and Saudi Arabia Warn Iran’s Actions Threaten Stability Across the Gulf
Egypt and Saudi Arabia Warn Iran’s Actions Threaten Stability Across the Gulf
Saudi Arabia Unveils Comprehensive 2026 Roadmap to Streamline Company Formation
Saudi-UAE Tensions Reveal Emerging Rivalry at the Heart of Gulf Power Dynamics
Saudi Arabia Launches Gulf Maritime Support Initiative to Safeguard Shipping
Saudi Arabia Expands US Military Access as UAE Braces for Prolonged Iran Conflict
Saudi Arabia Expels Iranian Diplomats Amid Escalating Regional Tensions
Saudi Arabia’s Edarat Wins Major Data Centre Deal with Regional Bank
Iran Intensifies Gulf Offensive as Saudi Arabia Intercepts Dozens of Drones
Regional Powers Hold Security Talks as Turkey Seeks New Strategic Pact
Asian Refiners Urge Saudi Arabia to Revise Oil Pricing Mechanism Amid War-Driven Volatility
Gulf States Weigh US Base Access and Military Alignment as Iran War Intensifies
IRGC Claims Strikes on Israel, Kuwait and Saudi Arabia as Conflict Widens
Remains of Fallen Soldier Repatriated Following Death in Saudi Arabia
Saudi Arabia Intercepts Multiple Drones Amid Continued Iranian-Linked Attacks
Iran Tensions Challenge Saudi Arabia’s Strategic Shift to Red Sea Oil Exports
Saudi Arabia Turns to Alternative Export Routes as Hormuz Disruption Strains Oil Flows
Saudi Arabia and UAE Move Closer to Backing US-Israeli Campaign Against Iran
Saudi Arabia Signals Readiness for Military Response as Iran Tensions Escalate
Saudi Arabia Warns Oil Could Surge Beyond $180 as Iran Conflict Disrupts Global Supply
Saudi Arabia Reports Drone Strike on Key Red Sea Refinery in Yanbu
United States Urges Citizens to Leave Saudi Arabia Amid Escalating Regional Conflict
Former Media Executive Chronicles Rise of Saudi Crown Prince in New Book
Saudi Aramco–Exxon Refinery in Yanbu Targeted in Latest Wave of Iranian Attacks
Greek-Operated Patriot System Intercepts Iranian Missiles Over Saudi Arabia
Asian Refiners Urge Saudi Arabia to Revise Oil Pricing as War Upends Markets
Arab and Muslim Ministers Convene in Riyadh to Coordinate Response to Iran Crisis
Saudi Arabia Expands Global Partnerships to Accelerate Vision 2030 Transformation
Europe and Japan Signal Readiness to Help Secure Strait of Hormuz Amid Escalating Crisis
Saudi Arabia Signals Firm Stance as Iranian-Linked Attacks Intensify
U.S. Lawmakers Press Rubio to Enforce Strong Safeguards in Saudi Nuclear Deal
Iran Issues Evacuation Warning to Gulf States After Strike on Major Gas Field
Saudi Arabia to Convene Arab and Islamic Ministers for Urgent Talks on Regional Conflict
Saudi Arabia Confirms Eid al-Fitr as Moon Sighting Determines End of Ramadan
Saudi Arabia Boosts Crude Exports to Highest Levels Since 2023, Data Shows
Iran Issues Warning to Gulf Energy Infrastructure Following Strike on Major Gas Field
Saudi Arabia Restarts Ras Tanura Refinery Following Drone Strike, Reinforcing Energy Resilience
Saudi Arabia Restarts Ras Tanura Refinery Following Drone Strike, Reinforcing Energy Resilience
Saudi Arabia Intercepts Ballistic Missiles Targeting Riyadh Amid Escalating Regional Tensions
×