Three Hurdles to Implementing OECD’s Global Minimum Tax

In late December, the OECD released model rules for the global minimum tax with a goal for implementation focusing on 2023. But, writes George Salis of Vertex, Inc., it’s not a sure thing—at least three critical contingencies stand as possible obstacles to implementation. 
 
Reading the headlines, it looks like the OECD’s global minimum tax plan may be gaining steam. But while most member nations agreed to an overall 15% global minimum tax rate, a lot needs to happen before a multinational tax treaty is signed and implementation begins. 
 
There’s a good chance enough will go right in the coming months that the OECD will pull off its global minimum tax plan, with implementation coming in 2023 or 2024. But it will not be an easy road for member countries, their respective legislatures, or the affected companies. 
 
It will be crucial for tax departments to keep tabs on the progress of the three challenges outlined above and understand that, at this point, every deal and every date is a moving target.