OECD: Regulated financial services exclusion under Amount A of Pillar One; public consultation

Comments are requested by 20 May 2022.

Amount A of Pillar One; public consultation

The Organisation for Economic Cooperation and Development (OECD) today issued a release seeking public comments on the regulated financial services exclusion under Amount A of Pillar One—part of the ongoing work of the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS) in implementing the two-pillar solution to address the tax challenges arising from the digitalisation of the economy.

As explained by today’s OECD release,

  • The regulated financial services exclusion will exclude from the scope of Amount A the revenues and profits from regulated financial institutions.
  • The defining character of this sector is that it is subject to a unique form of regulation, in the form of capital adequacy requirements, that reflect the risks taken on and borne by the firm.
  • The scope of the exclusion derives from that requirement, meaning that entities that are subject to specific capital measures (and only those) are excluded from Amount A. 

The OECD/G20 Inclusive Framework on BEPS agreed to the release of the public consultation document [PDF 1 MB], in order to solicit public comments, but as noted in today’s release, “… it does not reflect consensus regarding the substance of the document.” According to the OECD, the comments received will assist members of the Inclusive Framework in further refining and finalizing the relevant rules.

Comments are requested by 20 May 2022.


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.