BEPS 2.0: A Comprehensive Guide Unveiling the Latest Taxation Reforms
Latest developments and insights on the two-pillar international tax framework proposed by the OECD.
BEPS 2.0 is an international tax framework which aims to ensure fairer taxation and sets a global minimum corporate tax rate.
Certain Multinational Enterprises (MNE’s) exploit gaps and mismatches in the tax rules of different countries to avoid paying tax. These tax planning strategies are known as base erosion and profit shifting (BEPS), and can disproportionally effect developing countries. To address these issues, the Organisation for Economic Cooperation and Development (OECD) created a tax framework called BEPS 1.0. Over time, the digitalisation of the global economy has meant MNE’s can access global markets with relative ease, which brings increased risks. To mitigate risks brought about by digitalisation, BEPS 1.0 has been updated, and is now commonly referred to as BEPS 2.0.
BEPS 2.0 consists of two key pillars:
Pillar One is focused on profit allocation and nexus.
Pillar Two is focused on a global minimum corporate tax rate.
Pillar One, comprising Amount A and Amount B, was originally expected to come into force in 2023, though is now expected in 2024. There is no specific timeline set out only for Amount B though the OECD claims to be working in a timebound manner for achieving this.
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BEPS 2.0
Resources
Global Updates and News
Ministry of Finance Seeks Public Comments on Annual Return Form for Qualified Domestic Minimum Top-Up Tax
Chris Danes
Treasury of Finance Announces Start of Advance Payments for Minimum Tax by Multinationals and Large Domestic Groups
Chris Danes
OECD Opens Consultation on Draft User Guide for GloBE Information Return XML Schema
Chris Danes
Channel Islands and Isle of Man Advance Implementation of OECD Pillar Two Tax Framework
Chris Danes
BEPS Pillar II enters the “second half”: the goal of robust data and cross-functional working is paramount
Chris Danes
Navigating Pillar 2: Essential Registration Requirements for 2024 and Beyond
Chris Danes
OECD Projects GloBE Implementation to Yield Up to USD 192 Billion Annual Revenue Gain
Chris Danes
Autumn Statement 2023: GloBE Model Rules (Pillar 2) Updates
Chris Danes
Pillar 2 Rules in Germany move forward and are one step away from becoming law
Chris Danes
Multilateral Instrument to Implement Subject to Tax Rule Open for Signature
Chris Danes
GloBE Model Rules (Pillar 2) – Deferred Tax Requirements
Chris Danes
138 Countries and Jurisdictions Reach Historic Landmark Agreement on International Tax Reform
Chris Danes
Financial Reporting Council Proposes to Temporarily Waive Deferred Tax Accounting Requirement Under Pillar Two Rules
Chris Danes
Businesses Complain New Global Minimum Tax Filing Rules Would Be Too Burdensome and Complex
Ashish Bhatnagar
Budget 2023: Singapore Proposes Implementation of Pillar Two from 2025, New Incentives for Innovation
Chris Denning
Global Tax Pact Would Yield Much Higher Revenue Than Previously Expected, OECD Says
Chris Danes
Council Reaches Agreement on Minimum Taxation Directive
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Chris Danes
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