An Expert Briefing in the August edition of Financier Worldwide was concerned with Pillar II of the OECD base erosion and profit shifting (BEPS) agreement in 2020, which advocates a global minimum tax. It applies to multinational groups with more than €750 million in sales. Pillar II offers an inclusive framework which participants accept voluntarily. OECD has issued model guidelines, together with technical comments and examples, in March 2022. Implementation begins in 2023 and involves fundamental changes to the international tax architecture. It intends to decrease multinational enterprises (MNE) profit-shifting, enhance tax fairness, and boost revenue. It intends to eliminate harmful tax rivalry between nations and restrict the ‘race to the bottom’ in corporate income tax (CIT) which is often induced by governments vying for foreign direct investment (FDI).
Any modest contributions for my time and ongoing expenses are welcomed! At Buy me a Coffee one-off contributions start as low as $3, at
NOTE THAT THE ABOVE LINK IS NOW CORRECTED AND WORKS!