The Action Plan identified 15 actions aimed at introducing coherence in the domestic rules that affect cross-border activities, reinforcing substance requirements in the existing international standards, and improving transparency and certainty.
The Pillar Two Model Rules (also referred to as the “Anti Global Base Erosion” or “GloBE” Rules), released on 20 December 2021, are part of the Two-Pillar Solution to specifically address the tax challenges of the digitalisation of the economy. These rules are designed to ensure large multinational enterprises (MNEs) pay a minimum level of tax on the income arising in each jurisdiction where they operate. Following the release of the Globe Rules, on 20 December 2022, the OECD released its long-anticipated implementation package for Pillar 2, which includes three key documents.
In the article live on the global website, as part of the global international tax website hub of Grant Thornton Global, we reveal a summary of the key highlights in the new documents released and make some practical suggestions on the actions businesses could take to prepare accordingly.