With the latest OECD’s ‘BEPS 2.0’ initiative global tax leaders and organizations face potential new challenges in the global tax landscape. KPMG professionals can assist you with understanding and communicating the potential impact of these challenges and potential impacts utilizing your specific global footprint.
The OECD's latest initiative may affect multinationals more than any other proposals in the last decade. The OECD is evaluating two modifications to the existing tax system: new ways to apportion income between taxing jurisdictions, and a `backstop' imposing a minimum tax and denial of deductions or imposition of withholding taxes on payments made to `low tax' entities.
A work plan has been drawn up with the countries in the so-called 'Inclusive Framework', which is a network of +135 countries, including OECD member countries as well as 66 developing countries and 14 observer organisations. This work plan consists of two pillars. The first pillar (Pillar 1) aims at developing a new approach for establishing taxable presence (so-called 'nexus') in the digital economy. The second pillar (Pillar 2) introduces the concept of a global minimum profit tax.. Download the PDF below to read more about the two pillars: