On 5 June 2021, the G7 Finance Ministers issued a statement indicating that they have reached an agreement on updated international tax rules.
The G7 agreement addresses two core issues with two sets of rules. The first set, the Pillar One rules, involve the reallocation of taxable profits of the largest multinationals to ‘market jurisdictions’. Essentially, it is a new profit allocation mechanism where at least 20% of the profit of a multinational group above a nominated profit threshold of 10% will be allocated to market jurisdictions. The second set, the Pillar Two rules, seek to set a global effective tax rate of at least 15% for large multinationals operating around the world.
Multinational groups who may be affected by BEPS 2.0 should start considering the potential impact for themselves and their relevant stakeholders.
A copy of our KPMG Tax Whiz can be accessed via the above link.
Should you have any questions or require further clarification, please do not hesitate to email any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organisation.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Regards,
Tai Lai Kok |
Nicholas Crist |
Bob Kee |
