United Kingdom: Opened consultation on OECD International Tax Proposals

The Treasury of the United Kingdom opened a consultation on how Pillar Two of the OECD framework for the taxation of the digital economy will be implemented in the country. Pillar two, in particular, aims to ensure that multinational enterprises that operate within the UK pay a global minimum level of tax of 15%. The consultation concerns the scope of the taxation, the method to calculate the effective tax rate and the top-up tax, the charging mechanisms and the reporting rules. Finally, the consultation assesses the impacts of the reform and the interaction with previously existing legislation. The consultation closes on 4 April 2022.