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.
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