The Lead Story
OECD Hands Over a Key Chip in Global Minimum Tax Talks
The global tax chessboard just saw a surprise gambit. Negotiators at the OECD have quietly agreed that the US will not claim first taxing rights on American multinationals abroad, Bloomberg Tax reports. The concession, tucked into the latest draft of Pillar Two rules, would shield US-headquartered giants from some of the 15% global minimum tax’s harshest bites.
Why now? Several countries had balked at letting Washington scoop up revenue on profits made inside their borders. By yielding that point, the US hopes to keep its firms inside a friendlier “side-by-side regime” that could exempt them from layers of top-up taxes. One negotiator told Bloomberg Tax the tweak “unlocks consensus we couldn’t reach all summer.”
The draft also layers on new eligibility tests for domestic regimes, a move aimed at tamping down creative interpretations once the rulebook goes live in 2026. For additional context on evolving tax regulations, see our Introduction to Nigerian Tax Laws.
The reaction was swift. European finance ministries welcomed the breakthrough but warned that “time is running out” to finalize text before year-end sign-off. US lobbyists, meanwhile, called the carve-out “a pragmatic nod to competitiveness.” Expect fireworks as lawmakers on Capitol Hill parse whether the deal undercuts, or rescues, America’s own corporate tax base.
Around the Tax World
• Romania doubles down on its 10% flat tax. A decade after slashing personal income rates, the country’s one-rate mantra plus slick e-filing has turned it into “one of Europe’s most business-friendly tax jurisdictions,” International Tax Review notes. Similar strategic tax reforms have been observed in Nigeria, as detailed in Nigeria’s New Tax Playbook Ruffles Aviation, Woos Big Tech.
• India’s MLI headaches. Courts are citing most-favoured-nation clauses to question the very enforceability of the OECD Multilateral Instrument, according to International Tax Review. Tax officials now face fresh litigation just as treaty changes were supposed to streamline matters.
• Pakistan spins up an independent Tax Policy Office. Islamabad appointed veteran policymaker Dr. Najeeb Ahmed Memon to lead the IMF-mandated unit, separating tax design from collection (Arab News).
• Germany’s transfer-pricing gap. Two Federal Fiscal Court rulings exposed “limitations that gaps in local legislation can create” when slicing profits between a head office and foreign permanent establishment (Bloomberg Tax).
Tax Stat of the Day
10% , Romania’s flat personal income tax rate, unchanged since 2018 and still one of the EU’s lowest.
Looking Ahead
All eyes now turn to the next OECD draft, expected in November, where negotiators aim to lock down final Pillar Two language before ministers gather in Paris for a decisive vote. To understand how domestic tax reforms compare with these global moves, explore our comprehensive guide on Nigerian Tax Laws 2025 - Comprehensive Tax Reform Legislation.