Overview of the OECD's Two-Pillar Proposal

The OECD's two-pillar proposal aims to revamp the international corporate tax system to address challenges posed by the digital economy. Pillar one focuses on revising profit allocation and nexus rules, while pillar two introduces a global minimum tax rate of 15% for large multinational enterprises. Recent updates include the publication of consolidated administrative guidance and a streamlined process for identifying compliant jurisdictions under pillar two. These developments highlight the OECD's ongoing efforts to modernize tax rules in response to globalization and digitalization.