Integrating Pillar 2 into insurance company tax strategies

 

Complexities may require additional resources

 

Multinational insurance companies may face substantial challenges in complying with the Pillar 2 global minimum tax requirements that are being implemented in many countries around the world.

 

The Pillar 2 requirements create a framework agreed upon by more than 130 jurisdictions to create a global minimum effective tax rate of 15% for companies regardless of where they earn their income. Although the United States has been unable to get the Pillar 2 requirements approved from a legislative standpoint, the new rules will have a substantial effect on global insurance companies, which often have subsidiaries in low-tax foreign country jurisdictions.

 

Grant Thornton professionals provide in-depth analysis in this article in The Federal Lawyer on the Pillar 2 requirements, shortcuts that can significantly reduce compliance work, and resources that multinational insurance companies might need to comply with the new rules. Read the article to see how to meet the compliance requirements and integrate Pillar 2 considerations into your tax strategy.

 
 

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