Most multinational company tax leaders in a recent Deloitte survey said they expect new international rules on minimum taxation to come into force in the next few years, but they don’t expect the new rules to have a big impact on their companies’ taxes.
Deloitte said 206 tax directors and managers across 28 countries responded to its latest global tax policy survey, conducted early this year. The poll asked leaders what impact they expect on their businesses from OECD’s Pillar One and Pillar Two measures on taxation of corporate profits, as well as from EU legislative proposals, remote work, and environmental, social, and governance matters.
Some 85% of respondents said they expect a critical mass of countries will implement an income inclusion rule under the OECD’s Pillar Two initiative by 2025, and 81% expect Pillar Two’s undertaxed-profits rule to get implemented by 2026.
Just 34% expect the OECD rules to result in a significant increase in their group’s
global effective tax rate, and a minority expect the implementation of Pillar Two rules to cause them to make significant changes to their corporate structure.
Some 56% of respondents said they’ve done at least some kind of modelling of the impact of Pillar Two on their tax profiles. And 62% said they’re somewhat confident that they will have tax and accounting data on hand to comply with Pillar Two, Deloitte said. (Deloitte)
