Arab Press

بالشعب و للشعب
Thursday, Dec 04, 2025

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

Arab Press
0:00
0:00
Close
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Hong Kong Residents Mourn Victims as 1,500 People Relocated After Devastating Tower Fire
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
×