OECD: Report on tax incentives and the global minimum tax

Considerations for countries to take into account as they prepare for the implementation of Pillar Two

Considerations to take into account for the implementation of Pillar Two

The Organisation for Economic Cooperation and Development (OECD) today released a report entitled “Tax Incentives and the Global Minimum Tax: Reconsidering Tax Incentives after the GloBE Rules” [PDF 3.05 MB].

According to the OECD website, the report provides a number of concrete considerations for countries to take into account as they prepare for the implementation of Pillar Two—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.

Specifically, the report discusses the existing use of tax incentives in developed and developing countries, analyses key provisions of the Global Anti-Base Erosion (GloBE) Rules and shows how they may impact different types of tax incentives differently. 


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.