Latest OECD/G20 Developments Re ‘GloBE' Proposals For Minimum Corporate Taxation

The OECD's latest consultations (which seem designed and, ultimately, destined to pave the way to global tax harmonisation) and, in particular, the ambitiously urgent timeframe to reach agreement on these, appear to be driven by the growing unilateral implementation of DST's. There is some concern that the increasing deployment of DSTs could represent a threat to the tax harmonisation agenda. Whilst the OECD's proposals are ostensibly presented as a solution for digital taxation, the intended direction of travel would be to expand these measures to consumer-facing businesses.

Fuller details re the consultations can be found on the OECD's website here. 

Given the intended wide application of the measures, if implemented (in particular Pillar Two, involving a yet to be specified global minimum corporate tax rate to limit profit-shifting to low/no tax jurisdictions by multi-national groups), this could give rise to the reappraisal of Gibraltar's own tax regime.