Global corporation tax deal designed to encompass tech giants delayed until 2024

PLANS to force multinational corporations to pay more tax have been delayed and will not be implemented until 2024.

The reforms, spearheaded by Joe Biden, the US president, have been held up as a result of “technical” issues, the Organisation for Economic Co-operation and Development said yesterday.

The so-called “Pillar 1” reforms were due to kick in next year. Under the proposals, partially a response to the controversial tax arrangements of giant US tech companies, multinationals will have to redirect their profits back towards the countries where they made sales. “Pillar 2”, the other part of the deal, will introduce a 15pc global minimum corporation tax rate.

Speaking at the World Economic Forum in Davos, Mathias Cormann, OECD secretary general, said: “I suspect it’s probably most likely now that we will end up with practical implementation from 2024 onwards. There are still some difficult discussions under way in relation to some of the technical aspects.”

The deal, which was announced last year, could also hit a snag in the US where it is opposed by Republicans who may gain control of Congress in the midterm elections this autumn.

Several countries have promised to place new levies on US companies if the deal collapses. Mr Cormann said corporations eventually support the new tax regime.

He said: “In the end, self-interest does prevail and as far as Pillar 1 is concerned I just can’t see that large American multinationals would prefer to be on the receiving end of a proliferation of different tax regimes.”

Brussels is struggling to secure approval across EU states for the deal amid resistance from Poland.