Pillar Two Safe Harbors and Penalty Relief

Since multinational entities with revenue above €750 million will now be required to pay a minimum tax of at least 15% and report their Global Anti-Base Erosion (GloBE) effective tax rate (ETR) for the various jurisdictions in which they operate, the OECD has created two safe harbors and a system for penalty relief to help ease the compliance burden.

This OnPoint outlines the Pillar Two safe harbors and penalty relief provisions, specifically:

• A temporary CbCR Safe Harbor
• A permanent framework for a potential Simplified Calculations Safe Harbor
• Temporary Penalty Relief

Download your complimentary copy now.