Pillar 1 - global tax rules

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Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).

Pillar 1 of the OECD's tax reforms would give taxing rights over the residual profits of large multinational enterprises to the jurisdictions where the customers and users are located.


This is relevant for corporate treasurers because treasury and tax are closely bound together.


Treasurers may need to assist in compliance with Pillar 1
"Pillar 1 [is] a new nexus rule, which reallocates a business’s residual profits to the jurisdictions that generate value without necessarily having a physical presence.
If Pillar 1 is introduced, treasurers may need to assist in compliance, setting up bank accounts and arranging funds transfers in order to meet these liabilities."
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