OECD pillar I and II
Feb 8 2020 by
OECD/G20 Inclusive Framework on BEPS made a statement on the Two-Pillar Approach to Address the Tax Challenges Arising from the Digitalisation of the Economy.
Pillar One focuses on the allocation of taxing rights, and seeks to undertake a coherent and concurrent review of the profit allocation and nexus rules.
Pillar Two (also referred to as the “GloBE” proposal) focuses on the remaining BEPS issues and seeks to develop rules that would provide jurisdictions with a right to “tax back” where other jurisdictions have not exercised their primary taxing rights or the payment is otherwise subject to low levels of effective taxation.