The tax authority view of the initiative and its impact locally
Potential loss of tax revenue
Impact on concessional regimes
How should businesses prepare?
Would you expect any concessional regimes in your country (such as innovation/patent box types, R&D incentives) to be impacted by the global minimum tax (now to be implemented at 15%)?
What is the general view of the tax authorities in your jurisdiction regarding the proposed OECD approach to taxation of the digital economy through the Pillar One and Pillar Two workstreams? Do they support the initiative? What do they think their impact on businesses and the economy will be? Are there any issues that may be of particular relevance or importance to your region or local market?
A fair share of global tax?
Does your government consider that it would be adequately compensated through the application of the proposed rules (now 25% of global profit above a 10% margin on revenue, with global revenue threshold of EUR 20 billion and local nexus of EUR 1 million in revenue or EUR 250,000 for smaller economies) or would it keep taxes on digital goods and services in place for now to act as an on-going bargaining chip for a higher share of global tax?
Do you have any data on the potential loss of tax revenue for your country as a result of the reallocation of taxing rights over part of the residual profit to other jurisdictions? Or more generally, is there a concern in your country about the potential loss of tax revenue as a result of Pillar One?
What should businesses look out for in your country until such time as the rules are finalised?
Please provide a single quote that could encapsulate any of the above points that you feel particularly strongly reflect the opinion in your country.