Business at OECD (BIAC) has said that there is still important work to be done in relation to the OECD’s ongoing tax work on Pillar Two rules, commonly known as GloBE.
BIAC said that the OECD’s latest guidance alleviate some of the complexity associated with the Pillar Two tax rules, significant complexity remains with respect to the ongoing compliance framework and optionality available to implementing jurisdictions.
“This highlights the critical importance of continuing the dialogue between the OECD and business on further simplification of the Pillar Two rules through meaningful and permanent safe harbors, to ensure successful implementation, compliance, and administration of Pillar Two,” BIAC said in a statement issued on July 25.
Alan McLean, Chair of the Business at OECD Tax Committee, said: “While Business at OECD will take the time to review and reflect on this new guidance, we note there is still important work to be done. Business at OECD acknowledges that some of our input has resulted in practical improvements, while generally noting that implementation of the new rules will still be complicated and challenging for both tax administrations and taxpayers.”
“Consistent implementation of the safe harbors and simplification measures, and a balanced approach to compliance requirements, will be critical to the success of the rules. Business at OECD looks forward to working together with the Inclusive Framework on the final elements to effectively ease administrative burden and increase certainty for the implementation of Pillar One and Pillar Two.”