OECD findings on the economic analysis of Pillar One and Two
February 14, 2020
Overview
The OECD Secretariat hosted a webcast on February 13 in which it presented preliminary findings on economic analysis of Pillars One and Two of the digitalizing economy project. The OECD analysis suggests that the combined effects of the two pillars, based on assumptions without prejudging key policy design features of the framework, results in an initial estimate of a 4% increase of corporate income tax revenue collected – about $100 billion annually across all jurisdictions – with little effect on investment costs. The OECD will continue to refine these findings as new data is shared. Policymakers will be discussing the analysis as the Inclusive Framework (IF) continues discussions to reach a consensus solution on the key design features by July 2020.
