National officials and OECD tax directors said at the IFA conference in Berlin they were optimistic about jurisdictions adopting Pillar 2 despite hurdles to the tax framework. rice field.
“There is a misunderstanding about the logic of Pillar 2 and how it will go. Mr. SwitzerlandConsult two of the latest pillars of.
“There may be small issues, but the logic is very strong,” added Saint-Amans during the Sept. 7 panel discussion. ITR previously reported.
Countries, including Germany, are keen to adopt Pillar 2, which requires large multinationals within the scope of CbC reporting to be taxed at a minimum rate of 15%.
On September 4, the German Federal Ministry for Economic Affairs and Climate Action’s State Secretary Sven Giegold said Germany needs to make progress in implementing the world’s lowest tax.
In a tweet, Giegold said he was acting independently to “finally enforce European law.”
At the IFA, Saint-Amans believed that countries promoting Pillar 2 implementation could create a “domino effect” and enable global consensus on the OECD tax framework. I said yes.
“The logic of Pillar 2 is different from the transparency that everyone needs here. It is enough to have a first mover who is significant enough in terms of the size of the multinational,” he said. .
Huey Ming Chiatern, Deputy Commissioner of the Singapore Inland Revenue Authority, said companies operating in the country consider the rules too complex and the timeline too ambitious, but the jurisdiction is set to follow the second pillar. will make an effort “more than ever” to employ
At the same panel, Gaël Perrault, Director of European and International Taxation, Tax Policy Department of the French Ministry of Economy and Finance, emphasized the need for fiscal consolidation due to the detrimental elements of excessive tax competition.
“It is important to set the framework for this tax competition,” he said, referring to other tax systems.
Countries should adopt the same set of rules to establish coordination, Perraud said. This is a “key element” of the OECD project.
France has already started implementation work, having agreed to a model regulation and started the process in the EU.
“It’s going so fast. It’s a big achievement. We’ll do it,” said Perrault.
While some countries may be moving forward with Pillar 2 approval, global consensus is yet to be seen as some countries, including the United States, remain reluctant to adopt the OECD project. not.
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