The European Commission welcomes the OECD’s agreement on a comprehensive package on the co-ordinated operation of global minimum tax rules for digitalised and global economy.
On 5 January, the OECD countries agreed on Pillar Two simplification and Side-by-Side System under the Global Anti-Base Erosion (GloBE) Rules.
This is a welcome step that stabilises the global minimum tax system, simplifies the rules, ensures fairness and keeps businesses competitive. It safeguards the minimum effective taxation of multinational enterprises, and it enhances legal certainty and predictability for European businesses, while reinforcing the stability of the international tax system. The outcome also highlights the value of strong multilateral cooperation and contributes to safeguarding a level playing field in global taxation.
Building on the progress already achieved on Pillar Two in the European Union, the Commission will oversee the effective and consistent implementation of Pillar Two within the EU. In parallel, the Commission will continue its work on further simplifying and streamlining tax rules for companies subject to Pillar Two, with a view to reducing administrative burden while preserving the integrity of the framework.
Source European Commission – Jan 6, 26