OECD: Public consultation on two-pillar solution launched; first building block under Pillar One released

Public consultation released for public comment by OECD

Public consultation released for public comment by OECD

The Organisation for Economic Cooperation and Development (OECD) announced in December 2021 a schedule for public consultations on various aspects of its two-pillar plan to address the tax challenges arising from digitalisation and globalisation of the economy. Read TaxNewsFlash

The OECD today launched the public consultation by releasing for public comments the first building block of Amount A under Pillar One – Draft Rules for Nexus and Revenue Sourcing. Comments are invited until 18 February 2022.

Today’s OECD release also confirms that a public consultation document for Amount B under Pillar One will be issued in mid-2022, with a public consultation event to follow the comment period. 

The OECD also stated that a public consultation on the implementation framework for Pillar Two will be launched later this month, with a consultation event to follow in March 2022.

For the “Subject to Tax Rule” of Pillar Two, the draft model provision and its commentary will be released in March 2022 with a defined set of questions for input. The multilateral instrument to facilitate the implementation of the “subject to tax rule” would also be released for comment at the same time.

Read a February 2022 report [PDF 1.8 MB] prepared by KPMG LLP that examines the draft model rules for nexus and revenue sourcing


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