OECD Pillar One and Two Represent Significant Changes to the International Tax System.

Nov 14

Will it Stop Tax Competition?

Multinationals will reallocate to the so-called “Market Jurisdictions” Amount A under the Pillar One Blueprint.

It is estimated that about $125 billion of profits will be reallocated to jurisdictions where multinationals effectively do business. There are 136 countries on board.

The international tax reform is aimed to prevent jurisdictions from keeping offering low tax rates to attract businesses.

Time will tell if we will see a shift in these competitive advantages from multinational taxes to high-net-worth individuals or employment taxes.

Pillar One is expected to come into force in 2023; but, local legislation may need to be modified to comply with it entiely.

OECD Pillar One (and Pillar Two) Represent Significant Changes to the International Tax System. Will it Stop Tax Competition?

Gilda Almeida

OECD Pillar One and Two Represent Significant Changes to the International Tax System.

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