Pillar 2

1.    Introduction

The OECD formulated Pillar 2 to address global taxation issues through its Inclusive Framework (IF) and the Base Erosion and Profit Shifting initiative (BEPS).

Over 143 Jurisdictions including the United Arab Emirates (UAE)

2.    Background on Pillar 2

• To address issues related to the Global Minimum Tax (GMT)
• To foster global tax fairness and cooperation by deterring profit shifting and tax avoidance.

3.    Impact of postponement

• Adapt global operations to anticipate tax landscape shifts.
• Authorities leverage the experience of foreign counterparts.
• Improve Pillar 2 through stakeholders’ feedback.
• Immediate financial relief for businesses.
• Opportunity for risk management related to Pillar 2

4.    How can Crowe help?

• Conducting an assessment of the MNE group’s operations to determine the impact of Pillar 2 on the group’s overall tax position.
• Developing a strategic approach to ensure a company’s compliance with Pillar 2 regulations while minimizing its tax liabilities.
• Identifying and mitigating risks associated with Pillar 2, while optimizing global tax strategy.