Updated In depth - Accounting for Pillar Two: Frequently asked questions

December 2024

At a glance

Pillar Two tax legislation has been implemented in over 35 countries, with certain provisions becoming effective as of January 1, 2024. The objective of Pillar Two is for large multinational enterprises to pay a minimum level of tax (a threshold effective tax rate of 15%) on the income arising in each jurisdiction where they operate. This global minimum tax brings significant complexity in determining impacts on the income tax provision for interim and annual financial reporting in calendar year 2024 for many multinational reporting entities.

This In depth includes our responses to frequently asked questions on US GAAP accounting considerations related to the implementation of Pillar Two, including interim considerations applicable for calendar year end companies beginning in the first quarter of 2024, valuation allowance impacts, and other questions, and supplements In depth 2023-03, OECD Pillar Two: Time to act on the global minimum tax.

New questions on standalone entity reporting and balance sheet classification have been added as of December 5, 2024. New questions are marked with the date added.

Contact us

Ed Geils

Ed Geils

Global and US Tax Knowledge Management Leader, PwC US

Follow us
Hide

Let us be part of your success story

We take on today's most pressing business challenges. Get in touch and let's get started.

Required fields are marked with an asterisk(*)

By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page.