Global Overview of Pillar 2 Adoption Status (March 2024)
The status of Pillar 2 adoption as of March 2024 shows a mix of enacted, announced, and uncertain intentions across various countries. Effective dates for different taxation rules vary, with some deferred or yet to be confirmed. The implementation of Pillar Two among countries is ongoing, with certain countries showing progress.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Status of Pillar 2 adoption March 2024 DRAFT FOR DISCUSSION PURPOSES ONLY
Status of Pillar 2 adoption (March 2024) Enacted Announced Intentions Timing Uncertain Draft Legislation Effective 2025 Effective 2024 EU Member States Non-EU Member States Australia (3) Bahamas (2) Bermuda (4) Canada (3) Cyprus (2, 3) EU (3, N/A deferrals*) Guernsey (1,2) Hong Kong (1, 2, 3) Isle of Man (1, 2) Jersey (1, 2) Lithuania* (2) Malaysia (1, 2) New Zealand (1,3) Singapore (1, 2) South Korea (3) Thailand (1, 2, 3) United Kingdom (3) Australia (1, 2) Barbados (2) Canada (1, 2) Colombia (4) Cyprus (1) EU (1, 2, N/A deferrals*) Gibraltar (2) Japan (1) Liechtenstein (1, 2) Norway (1, 2) Slovakia* (2) South Africa (1, 2) South Korea (1) Switzerland (2) UK (1, 2) Vietnam (1, 2) Zimbabwe (2) Brazil Gibraltar (1, 3) Indonesia Jamaica Japan (2, 3) Liechtenstein (3) Malaysia (3) Mauritius Mexico Norway (3) Puerto Rico Qatar (1, 2, 3) Singapore (3) Switzerland (1, 3) Ukraine UAE Australia Barbados Canada Cyprus Greece New Zealand South Africa Spain Thailand Bahamas Brazil Gibraltar Guernsey Hong Kong Indonesia Isle of Man Jamaica Jersey Kuwait Mauritius Mexico Poland Portugal Puerto Rico Qatar Singapore Taiwan UAE Ukraine Austria Belgium Bulgaria Croatia Czech Republic Denmark Finland France Germany Hungary Ireland Italy Luxembourg Netherlands Romania Slovenia Sweden Bermuda Colombia Japan Liechtenstein Malaysia Norway South Korea Switzerland UK Vietnam Zimbabwe Deferred* Estonia Latvia Lithuania Malta Slovakia (1) Income Inclusion Rule (IIR) (2) Domestic Minimum To-Up Tax (DMTT) (3) Undertaxed Profits Rule (UTPR) (4) 15% Corporate Income Tax (CIT) PwC Pillar Two Country Tracker Online *A temporary deferral is allowed by the Directive (Article 50) where EU Member States with no more than 12 in-scope MNEs headquartered in their state can elect to temporarily not apply the IIR and the UTPR for six consecutive fiscal years beginning from December 31, 2023. PwC 2
Effective date IIR 2024 2024 2024 2024 2024 2024 2024 <2030 2024 2024 2024 2024 2024 2024 2024 <2030 <2030 2024 <2030 2024 Country Enacted Draft Deferred Announced (Q)DMT 2024 2024 2024 2024 2025 2024 2024 <2030 2024 2024 2024 2024 2024 2024 2024 <2030 2025 2024 ? 2024 UTPR 2025 2025 2025 2025 2025 2025 2025 <2030 2025 2025 2025 2025 2025 2025 2025 <2030 <2030 2025 <2030 2025 Austria Belgium Bulgaria Croatia Cyprus* Czech Republic Denmark Estonia* Finland France Germany Greece* Hungary Ireland Italy Latvia* Lithuania* Luxembourg Malta* Netherlands Poland* Portugal* Romania Slovakia Slovenia Spain* Sweden Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Pillar Two Implementation (March 2024) Yes Yes Yes Yes EU Member countries Yes Yes Yes Yes Yes Yes *On January 25, the EU Commission announced infringement decisions against EU member countries that have not transposed the EU minimum tax Directive into domestic law. This includes Estonia, Greece, Spain, Cyprus, Latvia, Lithuania, Malta, Poland, and Portugal. Yes Yes Yes Yes 2024 2024 2024 2024 2024 2024 <2030 2024 2024 2024 2025 <2030 2025 2025 2025 Yes Yes Yes Yes Yes PwC 3
Effective date IIR 2024 Country Enacted Draft (Q)DMT 2024 2024 15% CIT 2024 15% CIT ? 2024 2025 2026(?) 2024 2024 UTPR 2025 Australia Barbados Bermuda Canada Colombia Japan Liechtenstein Malaysia New Zealand Norway South Africa South Korea Switzerland Thailand United Kingdom Vietnam Zimbabwe Yes Yes Yes Pillar Two Implementation (March 2024) Yes 2024 2025 Yes Yes Yes Yes 2024 2024 2025 2025 2024 2024 2024 ? 2025 2024 2024 ? ? ? Non-EU Member countries that have draft or enacted legislation Yes 2025 ? ? 2025 ? 2025 2025 Yes Yes Yes Yes 2024 2025 2024 2024 2024 Yes Yes Yes Yes PwC 4
Effective date Country (Q)DMT 2025 ? 2024 2025 2025 ? 2025 ? 2025 ? ? ? ? 2025 ? ? ? IIR UTPR Bahamas Brazil Gibraltar Guernsey Hong Kong Indonesia Isle of Man Jamaica Jersey Mauritius Mexico Puerto Rico Qatar Singapore Taiwan UAE Ukraine ? ? ? ? Pillar Two Implementation (March 2024) 2025 2025 ? 2025 ? 2025 ? ? ? ? 2025 ? ? ? 2025 ? ? Non-EU Member countries that have announced intentions ? ? ? ? ? ? ? ? PwC 5
IF Member Country United States Nigeria Uzbekistan China Chile Costa Rica India Panama Pakistan Pillar Two Implementation (March 2024) Russia Peru Azerbaijan Uruguay T rkiye Kazakhstan Saudi Arabia Morocco Serbia OECD/G20 Inclusive Framework member countries that have not announced intentions Argentina Sri Lanka Dominican Republic Israel Kenya Belarus Philippines Oman Tunisia Egypt Angola + 44 other IF Members* *Albania, Andorra, Anguilla, Antigua and Barbuda, Armenia, Aruba, Bahrain, Belize, Benin, Bosnia and Herzegovina, Botswana, British Virgin Islands, Brunei Darussalam, Burkina Faso, Cabo Verde, Cameroon, Cayman Islands, Congo, Cook Islands, C te d Ivoire, Cura ao, Democratic Republic of the Congo, Djibouti, Dominica, Eswatini, Faroe Islands, Gabon, Georgia, Greenland, Grenada, Haiti, Honduras, Iceland, Jordan, Liberia, Macau, Maldives, Mauritania, Monaco, Mongolia, Montenegro, Montserrat, Namibia, North Macedonia PwC 6
