Pillar 2 seeks to end the ‘race to the bottom’ on tax rates worldwide. In a further clampdown on aggressive tax planning, Pillar 2 would also make it much harder to minimise tax by recording profits in low tax jurisdictions and costs in high tax counterparts. But agreement in principle is one thing. Enacting Pillar 2 in national legislation and applying it in practice is another
Pillar 2 has been ratified by the governments of more than 100 countries, so U.S. multinationals are likely to deal with its effects in many places.
So why is Pillar 2 so strategically critical and how can businesses turn a potential challenge into a source of competitive advantage?
Act now, make tomorrow easier and increase competitive advantage
Given the need to find out how much the tax bill could rise under Pillar 2 and with the compliance demands likely to put systems under severe strain, the case for getting preparations underway is compelling.
We round-up the progress on implementation in a selection of leading economies worldwide. We also look at the impact on businesses, likely go live timings and what could potentially delay or derail the process.
Five actions businesses can take now to ease the path to implementation, avoid needless upheaval and strengthen competitiveness ahead.
How the Grant Thornton network can assist you with Pillar 2 compliance.
The global IFRS team at Grant Thornton International Ltd has published consolidated example financial statements for the year ending 31 December 2018.
The global IFRS team at Grant Thornton International Ltd has published consolidated example financial statements for the year ending 31 December 2020.
