Avi Yonah, Reuven Shlomo
Building the gateway why the two pillars need each other electrónico / Reuven Avi-Yonah, Ajitesh Kir
There is a reason the OECD proposed two pillars for its gateway to a better tax future. A gateway requires both pillars, and neither can stand without the other. Pillar 2 is a fait accompli, but it needs countries to implement Pillar 1 as well because in the absence of a clear sourcing rule there is no limit to countries implementing the Qualified Domestic Minimum Top-Up Tax (QDMTT), which would turn off the other parts of Pillar 2 and potentially result in double taxation. Pillar 1 is not going forward in the absence of a Multilateral Tax Convention (MLC), but it can be implemented unilaterally, although that would require overriding existing tax treaties.
PRIMER PILAR (OCDE)
SEGUNDO PILAR (OCDE)
UTPR (OCDE)
CONVENIO MULTILATERAL
Kir, Ajitesh
Intertax 0165-2826 v.52, n.10, oct 2024, p. 591 – 601
Building the gateway why the two pillars need each other electrónico / Reuven Avi-Yonah, Ajitesh Kir
There is a reason the OECD proposed two pillars for its gateway to a better tax future. A gateway requires both pillars, and neither can stand without the other. Pillar 2 is a fait accompli, but it needs countries to implement Pillar 1 as well because in the absence of a clear sourcing rule there is no limit to countries implementing the Qualified Domestic Minimum Top-Up Tax (QDMTT), which would turn off the other parts of Pillar 2 and potentially result in double taxation. Pillar 1 is not going forward in the absence of a Multilateral Tax Convention (MLC), but it can be implemented unilaterally, although that would require overriding existing tax treaties.
PRIMER PILAR (OCDE)
SEGUNDO PILAR (OCDE)
UTPR (OCDE)
CONVENIO MULTILATERAL
Kir, Ajitesh
Intertax 0165-2826 v.52, n.10, oct 2024, p. 591 – 601