Skip to content Skip to footer
Search

Loading Results

PwC comments on the latest international tax rules for Pillar Two released by the OECD

Today the OECD has announced more details on how its new international minimum tax system - known as Pillar Two - will work and apply to different businesses and countries. 

Matt Ryan, head of international tax at PwC UK, comments:

“The new rules are expected to fundamentally shape the international corporate tax system of the future.

“A new global minimum effective tax rate will halt the ‘race to the bottom’ but it still allows governments some room to stimulate the economy using the tax system to support economic resilience and recovery. This could be through generous accelerated deductions for investment expenditure which do not reduce the Pillar Two effective tax rate, or by targeted reliefs which do reduce the effective tax rate while remaining subject to the agreed 15% floor.

“The main rules attaining to the new tax system are not compulsory but have been issued as a common approach, meaning, countries could in theory decide not to implement the new minimum tax system. However, the system is designed in such a way that a lower-tax jurisdiction may be better off in implementing the higher minimum tax rules so they don’t end up losing out on revenue opportunities.” 

 

Ends

 

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 156 countries with over 295,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at PwC.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see how we are structured for further details.

© 2021 PwC. All rights reserved

Contact us

Alice Bowdery

Alice Bowdery

Manager, media relations, PwC United Kingdom

Tel: +44 (0)7483 421 921

Follow us