Tax Challenges Arising from Digitalisation – Report on Pillar Two Blueprint
Inclusive Framework on BEPS
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The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project aims to create a single set of consensus-based international tax rules to address BEPS, and hence to protect tax bases while offering increased certainty and predictability to taxpayers. Addressing the tax challenges raised by digitalisation has been a top priority of the OECD/G20 Inclusive Framework in BEPS since 2015 with the release of the BEPS Action 1 Report. At the request of the G20, the Inclusive Framework has continued to work on the issue, delivering an interim report in March 2018. In 2019, members of the Inclusive Framework agreed to examine proposals in two pillars which could form the basis for a consensus solution to the tax challenges arising from digitalisation. That same year, a programme of work to be conducted on Pillar One and Pillar Two was adopted and later endorsed by the G20.
This report explores options and issues in connection with the design of a global minimum tax that would address remaining BEPS issues.
Also available in: French
Scope of the GloBE rules
This chapter sets out the rules for determining whether a taxpayer is within the scope of the GloBErules. The rules set out in this Chapter build on the definitions and methodology currently used by Inclusive Framework on BEPS members under BEPS Action 13 for Country by Country Reporting (CbCR) purposes. The GloBErules generally apply to the MNE Groups and their Constituent Entities that are subject to CbCR obligations described in the BEPS Action 13 Report (OECD, 2015[1]) however the GloBErules specifically exclude certain Ultimate Parent Entities, such as investment and pension funds, governmental entities (such as sovereign wealth funds) and international and non-profit bodies, which typically benefit from an exclusion or an exemption from tax under the laws of the jurisdiction where they are incorporated (Excluded Entities).
Also available in: French
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