G7 agreement on Pillar One and Pillar Two has been saved
G7 agreement on Pillar One and Pillar Two
On 5 June 2021, the G7 finance ministers published a Communiqué which sets out high-level political agreement on global tax reform, including the reallocation of a share of the global residual profit of certain businesses to market countries (Pillar One) and a minimum effective tax rate, on a country by country basis, of at least 15% (Pillar Two).
The G7’s agreement is huge step for international tax reform and signals a welcome return to a multilateral approach and the Communiquè hopes that broader agreement between the G20 finance ministers will be reached in their meeting of 10 and 11 July 2021.
This Tax Insights provides an overview of the G7 agreement.