Pillar Two and the Gulf States has been saved
Pillar Two and the Gulf States
Minimal impact or Tax environment transformation?
Since 2017, the member countries of the G20/Organization for Economic Co operation and Development (OECD) Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS) (the Inclusive Framework) have been jointly developing a Two-Pillar Solution to address the Tax challenges arising from the digitalization of the economy. In October 2020, two detailed “blueprints” were published on the potential rules for addressing the Nexus and profit allocation challenges (Pillar One) and for Global Minimum Tax (GMT) rules (Pillar Two).
A political agreement on key aspects of the proposals were reached by the G7, G20, and many of the IF countries by July 2021. On 8 October 2021, the IF published another statement on the components of a Global Tax reform, agreed by over 135 of its members as of November 2021. On 20 December 2021, the IF published their model rules for GMT.
Deloitte has therefore created an article which provides businesses with an overview of the potential impacts and Tax challenges the Two-Pillar Solution will have in the Gulf Cooperation Council (GCC).