The OECD expects to increase global corporate income taxes through BEPS 2.0:
- To reallocate taxing rights to market jurisdictions under Pillar One
- Through the introduction of Pillar Two
Starting in 2023 the Pillar Two GloBE Rules implementation will have a significant impact on BEPS 2.0. The GloBE Rules may have serious effects on the effective tax rate of MNE groups. A great deal of data, including non-financial information, will be required across the group. Some of this data may be difficult to gather and analyze. The potential tax impact could be significant, increasing cash tax cost and reducing earnings per share.
How can we help with Pillar One and Pillar Two
Meijburg’s BEPS 2.0 Pillar One and Pillar Two experts can help you with:
- Assess the impact of the introduction of a new taxing right to market jurisdictions under Amount A of Pillar
- Support with streamlining the application of the arm’s length principle for routing marketing and distribution activities under Amount B of Pillar One.
- Assess the impact of the GloBE Rules under Pillar Two on your organization
- Manage the new compliance requirements
- Identify opportunities to restructure group structures and value chains
Feel free to contact one of our experts to discuss BEPS 2.0, and Pillar One and Pillar Two in more detail.
BEPS 2.0 expert team