IFA 2022: Global tax leaders eager to adopt pillar two

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

IFA 2022: Global tax leaders eager to adopt pillar two

Viersen, Germany - January 9. 2022: Closeup of mobile phone with

World tax leaders and departing OECD director Pascal Saint-Amans said they would work increasingly hard to implement pillar two, during the IFA Congress.

Country officials and the OECD’s departing tax director said during the IFA Congress in Berlin that they remain optimistic that jurisdictions will adopt pillar two, despite hurdles in the tax framework.

“There is a misreading of the logic of pillar two and how it goes. But we have some countries implementing the change,” said Pascal Saint-Amans, director of the Centre for Tax Policy and Administration at the OECD, referring to Switzerland’s latest pillar two consultation.

“We might have some small hiccups, but the logic is extremely strong,” added Saint-Amans during the panel, on September 7. He will leave his role by the end of October, as ITR previously reported.

Countries including Germany have shown a strong appetite for adopting pillar two, which demands large multinationals within the country-by-country reporting scope to be taxed at a minimum tax rate of 15%.

On September 4, Sven Giegold, state secretary in the Federal Ministry for Economic Affairs and Climate Action in Germany, said the country must make progress on the implementation of the global minimum tax.

Giegold said in a tweet that they were acting on their own to “ultimately enforce European law”.

At IFA, Saint-Amans said he is confident that countries pushing for the implementation of pillar two will generate a “domino effect” and potentially enable a global consensus around the OECD tax framework.

“The pillar two logic is unlike transparency where you need everybody here – it’s enough to have a first mover, which is significant enough in terms of the size of multinational enterprises,” he said.

From Singapore to France

Huey Min Chia-Tern, deputy commissioner at the Inland Revenue Authority of Singapore, said that businesses operating in the country consider the rules too complex and the timeline too ambitious, but the jurisdiction will work “harder than ever” to adopt pillar two.

In the same panel, Gaël Perraud, director of European and international taxation at the tax policy department of the French Ministry of Economy and Finance, stressed the need for fiscal consolidation due to the harmful elements of excessive tax competition.

“It’s important to set a frame for this tax competition,” he said, referring to other tax regimes.

Countries must adopt the same set of rules for coordination to be established – a “key element” of the OECD project, according to Perraud.

France has already started the implementation work, as it has agreed on the model rules and started the process in the EU.

“It’s going so fast – it’s a major achievement. We will do it,” said Perraud.

Although the endorsement of pillar two may be underway in some countries, a global consensus remains to be seen as some nations, including the US, are still reluctant to adopt the OECD project.

more across site & shared bottom lb ros

More from across our site

Setu Kamal became the first practising barrister to be added to the UK’s tax avoidance promoter list; in other news, UHY expanded its network in Canada
US President Donald Trump’s tariffs may get thrown out by courts in the future and taxpayers should already be planning for that possibility, BDO’s Dustin Stamper tells ITR
Awards
ITR is delighted to reveal the first shortlisted nominees for the Middle East Tax Awards
The firm has appointed Deloitte’s former tax leader for Thailand to lead the new operation, which builds on considerable Asian investment in recent months
The Donald Trump administration could use legislation from 1930 if the Supreme Court blocks its tariffs; in other news, China has updated its VAT refund procedures
Braun gives ITR an exclusive insight into WTS Digital’s UK launch of its AI product, which can free up more than 1,500 hours per month by reducing routine tasks
Long tells ITR about her varied role, why curiosity is a key characteristic for the tax professional, and what she’d be doing if she wasn’t working in tax
The choice facing governments is not whether to adopt AI in taxation, but how to do so in a way that upholds the principles of tax fairness, writes Neil Kelley
As ITR’s client data reveals discontent with German tax advisers’ cost management, Grant Thornton’s local TP head insists it’s a two-way street
Uncertainty isn’t always a bad thing, but it’s easy to see how the Trump administration’s IRS commissioner merry-go-round may serve to undermine business confidence
Gift this article