Talks on Pillar 1 Will Come After Pillar 2 is Settled
Addressing U.S. concerns about pillar 2 and stabilizing the global minimum tax are OECD member countries’ first priorities, and a return to discussions on pillar 1 “will come after,” a top OECD official said.
Hong Kong to Adopt Modified GAAR in Pillar 2 Regime
Hong Kong’s legislative council is moving forward with a proposal to use its existing general antiavoidance rule to address arrangements that can potentially exploit Hong Kong’s pillar 2 minimum tax rules.
German Ministers Want to Ensure Minimum Tax Won’t Hurt Companies
German state finance ministers have asked the federal government to ensure that the global minimum tax rules under pillar 2 of the OECD’s two-pillar tax reform plan won’t leave German companies at a competitive disadvantage.
U.S. Tax Bill Re-Ups Proposal to Hit Back at UTPRs, DSTs
The latest section of House Republicans’ reconciliation tax bill revives proposals to allow the United States to retaliate against what Republicans call discriminatory extraterritorial taxes, this time explicitly referencing digital services taxes and undertaxed profits rules.
OECD Updates Consolidated Global Minimum Tax Commentary
The OECD has released an updated consolidated commentary to the global anti-base-erosion model rules under pillar 2 of its two-pillar global tax reform plan, incorporating three years’ worth of administrative guidance.
The U.N. Tax Initiative: Challenge or Complement to the OECD?
Katherin Díaz Velilla explains the OECD’s and U.N.’s approaches to creating an international tax framework and shows how developing nations and Latin American countries will play an important role in the U.N. approach.
GILTI Equivalence, Longer UTPR Safe Harbor Not Enough for U.S.
Treating the global intangible low-taxed income regime as an income inclusion rule and extending the transitional undertaxed profits rule safe harbor won’t be sufficient to address U.S. concerns about pillar 2, a Treasury official said.
Ex-Treasury Officials Split on Tariffs as Precursor to a U.S. VAT
A former Treasury official expressed hope that the Trump administration’s tariffs, though ill-advised, could spur policymakers to give more credence to the merits of a consumption-based tax in the United States.
Deglobalization, Tax Competition, and the Potential Revival of the Welfare State
Reuven S. Avi-Yonah and Doron Narotzki examine how the history of the United States’ relationship with the global economy could offer insight into innovative tax options in the current economic environment.
EU Tax Observatory Urges More Talks on Pillar 2 Tax Incentives
While statutory tax rates in the EU declined only slightly in 2014-2022, countries increasingly relied on base-narrowing measures, a trend that will require reconsideration of tax incentives under pillar 2, the EU Tax Observatory warned.
Kenya Proposes Expanding Significant Economic Presence Tax
The Kenyan government is aiming to expand the scope of its significant economic presence tax to tackle the digital economy despite ongoing negotiations on OECD pillar 1 tax reforms, practitioners said.
EU Member States Discuss Idea of UTPR as ‘External Tax Border’
EU member states are brainstorming ideas for new own resources for the EU budget, including external border taxes and regulations such as the undertaxed profits rule under the OECD's pillar 2 global minimum tax framework.
Potential U.S. Defense Measures Against the UTPR and DSTs in the Light of International Law
Błażej Kuźniacki examines the interplay between taxation and international law by considering possible U.S. defense measures against the UTPR (formerly known as the undertaxed payments rule) and digital services taxes.
South Centre Calls on Countries to Unite Against Threats to DSTs
Developing countries should adopt taxes aimed at the digital economy, including digital services taxes, and band together to resist external threats against those measures, the South Centre told G24 nations.
IMF Issues G24 Communiqué on Tax Reform Collaboration
The IMF has released a communiqué from the G24 regarding the navigation of international economic affairs among geopolitical and trade conflicts emerging from announced tariff policies; the communiqué notes that G24 members and the IMF are committed to working together to increase funds and promote sustainable, efficient tax reforms.
OECD Says Tax Breaks Keep Topping Other Forms of R&D Support
Tax incentives represented more than 50 percent of all government support for business research and development across most OECD countries and other major economies in 2023, according to OECD analysis.
Three Tax Treaty Terminations From the Global South: A Harbinger of Things to Come
Bertin Kiénou examines the terminations of double taxation agreements with France by Burkina Faso, Mali, and Niger, and he explains how they could be harbingers of the future if unfair tax treaties are not renegotiated, particularly those involving the Global South.
GILTI’s Coexistence With OECD Global Minimum Tax Is U.S. Priority
Finding a politically acceptable and stable coexistence between the U.S. global intangible low-taxed income regime and the OECD pillar 2 rules is the Trump administration’s priority in OECD tax reform talks, a Treasury official said.
White House Notes Cooperation With Italy on DST Fairness
The White House has issued a joint statement with Italy regarding the United States and Italy's cooperation on a mutually beneficial partnership, noting that the two countries are prioritizing nondiscriminatory digital services taxation to attract technological investments.
EU Counties to Work Out Pillar 2 Policy Options
EU ambassadors have asked the high-level working party on tax questions to discuss pillar 2 of the OECD’s global corporate tax project in light of the United States’ disengagement and to work out policy options.
Pillar 2 Guidance, EU Directive Face Compatibility Questions
Doubts have emerged about the compatibility of the pillar 2 administrative guidance released by the OECD inclusive framework in 2023 and 2025 and the EU’s pillar 2 directive, which was approved in 2022, observers say.
Exempt Small Economies From New Tariffs, U.N. Exhorts U.S.
Small, vulnerable countries should be exempt from new U.S. “reciprocal tariffs” because the new measures could devastate their economies without meaningfully affecting U.S. trade deficits or increasing U.S. revenue, according to a U.N. department.
Evaluating Possible U.S. Retaliatory Tax Measures
Danielle Rolfes, Casey Caldwell, and Alistair Pepper explore some of the key issues presented by four retaliatory tax measures now under consideration by President Trump and Congress to respond to discriminatory or extraterritorial taxes imposed by foreign countries.
U.N. Body Examines U.S. Tariffs’ Impact on Developing Countries
The U.N. Conference on Trade and Development published a report on April 14 analyzing the potential impact of U.S. tariffs on small and developing countries, including information on how more vulnerable countries would not significantly affect the United States' additional tariff revenue collections but would be disproportionately affected by high tariff rates.
OECD Talks Continue on Two-Pillar Global Tax Reforms
Jurisdictions in the OECD inclusive framework on base erosion and profit shifting, including the United States, have confirmed they will keep going with negotiations on the OECD’s plan to revamp the corporate tax system.