- The digital economy has grown rapidly, changing how businesses operate in foreign markets
- Multinational corporations have avoided paying taxes using BEPS strategies
- The OECD is working to standardize international taxation through the OECD/G20 Inclusive Framework
- Pillar One of the framework establishes new nexus and profit allocation rules for large MNEs
- Pillar Two ensures large multinational companies pay a 15% minimum tax regardless of where they operate
- The Subject to Tax Rule and Global Anti-Base Erosion Rules are part of Pillar Two to prevent tax avoidance by MNEs
Source: pro.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
