On 8 October 2021, 136 out of 140 members of the OECD/G20 Inclusive Framework officially agreed on certain key parameters to reallocate some taxing rights to market jurisdictions (“Pillar One”) and introduce a global minimum effective taxation (“Pillar Two”). Although these measures were initially presented as part of taxing the digital economy, in their current form they will affect all sectors. We also refer to our article of 11 October 2021.
Technical details will be released over the next 14 months, starting with Pillar Two rules in November 2021, while Pillar One rules will be detailed over 2022. The entry into force will be progressive as from 2023. And that means the time to prepare is now. To help you do so, Charlotte Kiès and Jan-Willem Kunen summarise the most important things you need to know about Pillar One and Pillar Two in the video below.
If after watching the video, you would like to know more about Pillar One and Pillar Two, please do not hesitate to contact us. Our Digital Economy Taxation team or your trusted Loyens & Loeff adviser will be happy to advise you on what Pillar One and Pillar Two means for your specific situation.