ARTICLE · 07 SEPTEMBER 2022

Pillar Two (WTS Global ICT Newsletter)

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On 20 December 2021, the OECD published the model rules on global minimum taxation ("Pillar Two"), on which around 140 countries have agreed as part of the work of the OECD's Inclusive Framework.

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On 20 December 2021, the OECD published the model rules on global minimum taxation ("Pillar Two"), on which around 140 countries have agreed as part of the work of the OECD's Inclusive Framework. By the so-called GloBE rules (Global Anti-Base Erosion), the Inclusive Framework countries want to ensure that the profits of large MNE Groups are effectively taxed at a rate of at least 15%.

The EU has closely followed the development of Pillar Two and issued a draft directive already on 22 December 2021. As soon as the directive is unanimously approved by the EU member states, all of them will in principle be obliged to transpose the directive into domestic law.

Overview of the regulations

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