Delays in legislation and implementation of OECD Pillar 2 may encourage some businesses to put preparations for this tax shake-up on the backburner. But the heightened uncertainty created by these delays makes adapting now even more important than before. Pillar 2 can be a catalyst for change if it is built into transformation plans from the outset.
Those with the confidence, agility and knowhow to build the operational and business model changes required by Pillar 2 into the wider strategy of their business will increase resilience and minimise disruption when the inevitable does happen.
Here we provide insight and advice that demonstrates why acting today will make tomorrow easier and increase competitive advantage.
We round-up the progress on implementation in a selection of leading economies worldwide. We also look at the impact on businesses, likely go live timings and what could potentially delay or derail the process.
Guidance on safe harbours and penalty relief; Public consultation document on the Global Anti-Base Erosion (GloBE) information return; and Public consultation document on tax certainty for the GloBE Rules, released as part of the OECD long-anticipated implementation package for Pillar 2.
Given the need to find out how much the tax bill could rise under Pillar 2 and with the compliance demands likely to put systems under severe strain, the case for getting preparations underway is compelling.
So why is Pillar 2 so strategically critical and how can businesses turn a potential challenge into a source of competitive advantage?
Pillar 2 has been ratified by the governments of more than 100 countries, so U.S. multinationals are likely to deal with its effects in many places.
We explore the political reaction to the rules, current views on implementation timelines, some complexities we see in applying these rules practically, and what businesses can do now to get ready for the introduction of Pillar 2.
