The pillar one and pillar two blueprints propose significant modifications to the international tax system, granting greater taxing rights to countries where the customers of a multinational group reside (pillar one) and adding a minimum tax on multinational group profits (pillar two). The drafts will be considered the next Inclusive Framework meeting, to be held October 8–9, at which time it is expected that the final blueprints will be made public. G20 finance ministers will then consider the pillar one and pillar two proposals at their October 15–16 meetings. The proposal will then be considered by G20 leaders at their November 21–22 meeting. The goal is to reach a global agreement on an updated international tax system by year-end.
Regards CA Vishal Mehta
Partner PBS Solutions