An impact assessment can lead to early identification of adverse outcomes from Pillar Two and enhance business planning.
Is your company ready for Pillar Two’s global minimum tax?
The OECD is working on the global implementation of tax proposals under two “pillars” as part of its BEPS project. Pillar Two focuses on ensuring that large MNEs pay a minimum rate of tax. Keeping up with Pillar Two legislation will be one of the biggest challenges MNE tax teams will face in the next few years. Most of the OECD’s member jurisdictions are moving steadily towards enacting Pillar Two rules, with close to 40 countries implementing the rules in 2024 and up to 60 countries expected to implement rules by the end of next year. As a result, 95 percent of in-scope MNEs will be affected in 2025 by Pillar Two Rules. This first article is designed for those clients just beginning their journey or those that have taken steps forward but need to validate work completed to date.
Is your company ready for Pillar Two’s global minimum tax?
This article is designed for those clients just beginning their journey or those that have taken steps forward but need to validate work completed to date.
Key takeaways
To prepare for Pillar Two, companies should begin with an impact assessment. This assessment will:
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Christian Athanasoulas
Tax Practice Leader – Services, KPMG LLP, and Global Head of International Tax and M&A Tax,
KPMG International