Saudi Press

Saudi Arabia and the world
Thursday, Apr 02, 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
Trump Engages Saudi Crown Prince in Talks on Potential Iran Ceasefire
Saudi Arabia’s Sadara Suspends Operations as Supply Chain Disruptions Intensify
Saudi Arabia Accelerates Energy Shift by Trading Oil Revenues for Battery Investments
Saudi Arabia Introduces Flexible Options for Expired Visas Amid Regional Disruptions
Online Narratives Surge as Iran–US Tensions Spill Into Digital Arena Following Trump Remarks
Saudi Arabia Urges Trump to Seize Strategic Moment as UAE Weighs Ground Deployment
Saudi Arabia Redirects Nearly One Million Barrels of Oil Daily Away from Strait of Hormuz
Saudi Arabia Carries Out Execution of Businessman Linked to 2011 Qatif Unrest
Ukraine–Saudi Defense Pact Signals Rising Demand for Battlefield Expertise
Saudi Arabia Balances Diplomacy and Defense Preparedness Amid Iran Conflict
Iran Conflict Reshapes Strategic Calculations in U.S.-Saudi Relations
Saudi Arabia Voices Caution as Trump’s Assertive War Strategy Reshapes Regional Dynamics
Saudi Arabia Updates Travel Advisory as Regional Conflict Intensifies
Saudi Arabia’s Sadara Suspends Petrochemical Production as Conflict Disrupts Operations
Iran Urges Saudi Arabia to Remove US Forces Amid Escalating Regional Tensions
Gulf Allies Urge Trump to Sustain Campaign Until Iran Is Fully Defeated
Saudi Arabia Unveils Strategic Rail Freight Corridors Connecting Gulf Ports to Jordan
Saudi Arabia Intercepts Drones and Ballistic Missiles in Major Defensive Operation
Houthi Escalation Opens New Front in Expanding Iran-Linked Conflict
Major Saudi Chemical Plant Halts Operations Amid Regional Conflict Disruptions
Strike on US Radar Aircraft in Saudi Arabia Signals Escalating Threat Capabilities
US Citizens in Saudi Arabia Advised to Shelter Indoors Amid Rising Regional Tensions
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Saudi Arabia Urges Trump to Lead Strategic Reset in Middle East as UAE Weighs Ground Role
Reed Smith Expands Saudi Presence with Senior Corporate Appointments
Trump Announces Approval of F-35 Fighter Jet Sale to Saudi Arabia
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
Ukraine Secures Defense Agreements with Qatar and Saudi Arabia as UAE Talks Advance
Oil Prices Surge as Saudi Arabia Adjusts Supply Amid Escalating Iran Tensions
Saudi Arabia Condemns Attacks on Kurdistan Leaders and Reaffirms Backing for Iraq’s Stability
Saudi Arabia Weighs Strategic Interests as Iran Conflict Raises Regional Stakes
Severe Thunderstorms Sweep Across UAE and Saudi Arabia Bringing Heavy Rainfall
Trump’s Strategic Alignment with Saudi Arabia Reflects Expanding Economic and Diplomatic Synergy
Saudi Arabia Strongly Condemns Attacks on Presidential Residences in Hawler
Saudi Stocks Edge Lower as Tadawul Index Closes Slightly Down
Houthis Enter Expanding Iran Conflict as US Deploys Additional Troops
Iran Seeks Assurances for Regional Allies as Saudi Arabia Presses for Firm Security Guarantees
Iranian Strike Reportedly Destroys $270 Million US E-3 Sentry Aircraft at Saudi Air Base
Iranian Strike on Saudi Base Leaves Ten American Personnel Injured
Ukraine Claims Russia Shared Satellite Intelligence with Iran Ahead of Saudi Base Strike
Pakistan Engages Regional Powers in Diplomatic Talks Over Iran Conflict
Escalating Iran Conflict Brings Renewed Focus to US Military Presence in Saudi Arabia
Iranian Strike Targets Saudi Airbase, Damaging Key US Military Assets
Modi and Saudi Crown Prince Emphasise Secure Shipping Routes in Talks on West Asia Conflict
Dallas-Based Company Secures One Billion Dollar Hotel Development Deal in Saudi Arabia
Zelensky Secures Defence Cooperation Deals with Gulf States During Strategic Regional Tour
Trump Calls on Saudi Arabia to Join Abraham Accords in Push for Expanded Middle East Cooperation
Trump Balances Humor and Praise in Remarks on Saudi Crown Prince
Saudi Arabia’s Strategic Pipeline Reaches Seven Million Barrel Capacity to Bypass Hormuz
Rubio Signals U.S. Could Conclude Iran Conflict Within Weeks as Air Campaign Intensifies
×