BEPS 2.0: Pillar Two Banking & Capital Markets industry impact (Asia Pacific session)

The OECD released the Model Rules on Pillar Two 15% global minimum effective tax rate on 20 December 2021, just 2 days before the release of a draft EU Directive from the European Commission.

While the EU Directive requires the unanimous approval by all 27 EU Member States, if adopted, EU Member States should bring into force the laws, regulations and administrative provisions necessary to implement the EU Directive by 31 December 2022, applying the Income Inclusion Rules starting from 1 January 2023. Other territories are following this trend even if it looks like there will be more flexibility in terms of entry into force.

Considering the tight timeline, the key actions for groups falling within the scope of the minimum taxation rules will be to assess the impact and prepare resources for the additional compliance requirements, to communicate the effects to the stakeholders and train teams. It starts now!

In our webcasts, PwC banking and capital markets industry experts and tax representatives from across our global network explored and discussed how the OECD’s BEPS 2.0: Pillar Two rules will impact banking and capital markets businesses.