Global businesses need more time to review and understand implications of new guidance on the international framework for minimum taxation of big multinational groups, an advisory group to the OECD said.
The Paris-based Organization for Economic Cooperation and Development earlier this month released new, additional administrative guidance on rules aimed at ensuring big MNEs pay a minimum amount of tax on their excess profits arising in each jurisdiction where they operate.
The additional guidance seeks to ease some of the complexity of administering and complying with these rules, known as Pillar Two, but there is still a lot to clarify about them, the Business and Industry Advisory Committee to the OECD said in a statement.
“Given that some elements of the new guidance have been released without or with only limited consultation, it will be necessary to review and understand the implications of these elements for businesses,” BIAC said.
“This highlights the critical importance of continuing the dialogue between the OECD and business on further simplification of the Pillar Two rules,” BIAC said.
