Commentary, webcast, alerts and response to OECD consultation on the blueprints for Pillar 1 and 2
The OECD released 'Blueprints' on the tax digitalisation/globalisation project on Monday 12 October. These two Blueprints cover Pillar 1 and Pillar 2 in the project framework previously announced. Pillar 1 looks at the attribution of revenues to market jurisdictions. Pillar 2 deals with the imposition of a minimum tax. The Blueprints indicate the degree of current consensus and outstanding issues being pursued in the Inclusive Framework of 137 countries and agreement on a widely accepted global solution had been scheduled by the end of 2020. We will update this page with comments on the announcement in the hours and days following.
PwC submitted a detailed response on 14 December to the OECD consultation in respect of the Blueprints. Our covering letter refers to our views on the principles that should help drive the project, both as a whole and in relation to Pillar 1 or Pillar 2 individually. Three annexes provide more detail.
A five minute discussion from PwC experts on the significance of the Blueprints.
October 16 2020
We hosted a webcast on the 16th of October to discuss this important milestone in the project. On the webcast members of our Global Tax Policy team and subject specialists discussed the progress that has been made, the difficulties being encountered and what the Blueprints mean for multinational enterprises, tax authorities and other stakeholders.
An Alert considers the significance of the Inclusive Framework of 137 countries having agreed to a new target date of mid-2021. It highlights some of the significant areas of apparent agreement and remaining political and technical issues where differences of views remain to be bridged. The Alert also looks at the other materials published alongside the Blueprints, including updated economic analyses of the potential impacts, together with the scope and timing of the announced consultation.
A further Alert considers the comments we made in our written response and in our presentation at the OECD public meeting in the context of what other commentators said.
Stef van Weeghel
Leader, Global Tax Policy & Administration Network, PwC Netherlands
Tel: +31 (0) 88 792 6763
Deputy Leader, Global Tax Policy & Administration Network, PwC United States
Tel: +1 (202) 312 7662
EMEA Tax Policy Leader, PwC Netherlands
Tel: +31 88 792 3611