Officials from the Organisation for Economic Cooperation and Development (OECD) recently acknowledged that Pillar 1 implementation would not be ready before 2024.
Pillar 1 is part of the historic agreement between 136 OECD members on a two-pillar approach for overhauling international tax rules on a global basis. Implementation was originally envisioned for 2023. Pillar 1 generally seeks to sets up a framework for signatories to tax online sales for certain large multinational enterprises. Its delay could spur more countries to pursue their own digital services taxes in the meantime.
Pillar 1 had been viewed as having a more difficult road to implementation than Pillar 2, which generally seeks to impose a 15% minimum tax on the earnings of certain multinational groups with revenues of 750 million euros or more. The OECD is still pushing for Pillar 2 implementation by 2023, but that is also looking increasingly unlikely. Objections from Poland have stymied agreement on implementation in European Union, and implementation in the U.S. has stalled with the failure of the Build Back Better agenda.
Contact:
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics

No Results Found. Please search again using different keywords and/or filters.