OECD Pillar One Tax Advisory service
An integrated modeling approach to assess the potential tax exposure to your business from the Pillar One proposal.
What are OECD Pillar One and Pillar Two?
The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) recently endorsed the key components of the two-pillar approach to International Tax Law. The agreement has set an ambitious and challenging timeline for both Pillars and whatever the final rules, most global businesses of any scale are likely to be impacted.
Pillar One: Nexus and profit allocation rules
Pillar One targets the largest multinational groups focusing initially on those with at least EUR 20 billion of consolidated revenue and net profits of over 10% (i.e., profits before tax to revenue) and will require them to pay tax in the locations where their customers and users are located. A formulaic approach will be used to allocate a percentage of profits between each jurisdiction. Pillar One should effectively require in scope multinationals to pay at least some tax in the markets they interact with.
What is Deloitte's OECD Pillar One and Pillar Two Tax Advisory service?
Deloitte’s OECD Pillar One and Pillar Two Tax Advisory service combines the deep expertise of Deloitte tax specialists with the analytical power of our technology solution to help companies assess and evaluate the potential implications of Pillar One and Pillar Two on their tax profile.
Our thinking
