Pillar Two, a global tax reform initiative by the OECD, is currently aimed at multinational corporations with annual revenues exceeding €750 million.
While many businesses fall below this threshold, its long-term implications warrant attention.
What is Pillar Two?
Pillar Two establishes a 15 per cent global minimum corporate tax rate, preventing large companies from shifting profits to low-tax jurisdictions.
Countries such as the UK, Canada, and over 140 others are implementing this policy to ensure a fairer tax system.
Why should you care?
Even if your business isn’t directly affected now, pillar two reflects a broader trend toward international tax standardisation.
Future changes could increase compliance burdens, especially if thresholds are lowered or new regulations like digital service taxes emerge.
Staying informed and working closely with tax advisers can help you manage potential risks.