130 OECD countries and jurisdictions signed a declaration agreeing on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy.
Pillar 1 will cover multinationals with a global turnover above 20 billion euros and profitability above 10%. The agreement excludes international shipping activities and potentially companies when they are in the initial phase of their international expansion. It also excludes regulated financial services.
Pillar 2 will apply to multinationals with a turnover of at least €750 million with a minimum rate of at least 15%.
For more information: Statement on a Two-Pillar Solution to Address the Tax Challenges Arising From the Digitalisation of the Economy – 1 July 2021 (oecd.org)
This update was brought to you by the Malta Business Bureau Brussels office. For more information email@example.com