As many as 90 per cent of the world’s biggest multinational companies look set to be covered by, with OECD tax boss David Bradbury expecting the plan to collect about $US220 billion a year.
“I think it’s fair to say that it is now becoming a reality. That EU’s adoption of the draft directive, unanimously, 27 member states of the EU now committing to implement this,” he said.“We see legislation having gone through in South Korea, we see significant progress in the United Kingdom, in Japan, in Switzerland, in Singapore, in Colombia, legislative proposals coming forward.
“We estimate that based on the countries that have either implemented pillar two into legislation or are committed to doing so, that by 2025, somewhere in the order of around 90 per cent of all multinational entities [over the €750 million revenue threshold] we will be within the scope of pillar two.”
Countries also agreed that multinational companies with revenue exceeding €20 billion, such as big tech and pharmaceutical companies, should pay tax in the jurisdictions where they actually earn the money.