United Kingdom: Implementation of UK Pillar Two rules delayed

On 14 June 2022, the United Kingdom (UK) Government announced that the implementation date for the Pillar 2 rules will be delayed, and they will become applicable after 31 December 2023. It was initially envisaged that the UK Pillar Two rules would take effect on 1 April 2023. The Financial Secretary noted that the delay is due to the stakeholders’ feedback during the public consultation on Pillar 2 rules implementation. The Pillar 2 rules are part of an international agreement (the OECD “Pillar 2 model rules”) to establish a global minimum tax of 15% for large multinationals with a turnover of at least EUR 750 million from 2023.