Pillar 2 - global tax rules: Difference between revisions
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Pillar 2 of the OECD's tax reforms agreed in 2021 provides detailed rules to implement a global minimum tax rate of 15% on large multinational enterprises. | Pillar 2 of the OECD's tax reforms agreed in 2021 provides detailed rules to implement a global minimum tax rate of 15% on large multinational enterprises. | ||
This is relevant for corporate treasurers because treasury and tax are closely bound together. | |||
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*[https://www.oecd.org/tax/beps/tax-challenges-arising-from-the-digitalisation-of-the-economy-global-anti-base-erosion-model-rules-pillar-two.htm OECD - Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) - Commentary] | *[https://www.oecd.org/tax/beps/tax-challenges-arising-from-the-digitalisation-of-the-economy-global-anti-base-erosion-model-rules-pillar-two.htm OECD - Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) - Commentary] | ||
*[https://www.oecd.org/tax/beps/pillar-two-model-rules-in-a-nutshell.pdf Pillar Two rules in a nutshell - OECD] | *[https://www.oecd.org/tax/beps/pillar-two-model-rules-in-a-nutshell.pdf Pillar Two rules in a nutshell - OECD] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 23:36, 14 September 2024
Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).
Pillar 2 of the OECD's tax reforms agreed in 2021 provides detailed rules to implement a global minimum tax rate of 15% on large multinational enterprises.
This is relevant for corporate treasurers because treasury and tax are closely bound together.
- Most tax territories expected to implement Pillar 2
- "Pillar 2 will require calculation of specific effective tax rates by territory: where this is below 15%, a top-up tax will arise.
- Where a territory does not collect this tax (for example, if it does not implement the rules), it is collected by other territories in which the group operates.
- Therefore, most territories are expected to implement Pillar 2, because the alternative is to give away tax revenues to others."
- Graham Robinson, international tax and treasury partner PwC & Iain McDonald international tax and treasury director PwC - The Treasurer, Issue 4 2022 - December 2022, p40.
See also
- Base erosion and profit shifting (BEPS)
- Corporation Tax
- Effective tax rate (ETR)
- European Union
- Financial reporting
- Global Anti-Base Erosion Rules (GloBE)
- Gross domestic product (GDP)
- Group
- G7
- Holdouts
- Income Inclusion Rule (IIR)
- Income Tax
- Multinational corporation/company
- Nexus rule
- Organisation for Economic Co-operation and Development (OECD)
- Parent company
- Pillar 1
- Pillar 2 - banking supervision
- Pillar 3
- Profit shifting
- Regime
- Risk management
- Sister company
- Subject To Tax Rule (STTR)
- Tax
- Tax avoidance
- Tax compliance
- Tax evasion
- Tax haven
- Tax rate
- Top-up Tax
- Transfer pricing
- Undertaxed Payments Rule (UTPR)
