Rolf Roellin’s Post

Pillar Two Compliance is taking shape - our today's blog post deals with the GIR-related documents the OECD published on 15 January 2025. Additionally, the picture is enriched by specific Swiss Pillar Two compliance considerations. https://lnkd.in/dy7dnr55

Detailed guidance/commentary released on GloBE (Pillar 2) by the OECD. - Explain of the intended outcomes - Clarification of the meaning of certain terms - Illustration of the application of the rules to certain fact patterns - Sorted by article/topic in 330+ pages The goal is to have a common and consistent interpretation and application. Link to the report in the comments.

On 17 June 2024, the OECD’s Inclusive Framework released additional guidance on Amount B covering issues that remained pending in the February 2024 report. This guidance comes after a significant delay from the originally committed date of 31 March and is welcome news, as it provides additional clarity on some of the thus far unresolved implementation aspects of the proposed Amount B provisions. For Asia Pacific, it is notable that the previously undefined "covered jurisdictions" includes several countries in our region. However, the guidance still leaves some important issues unaddressed. Read our alert here: https://lnkd.in/d_cKsc7m Richard Fletcher | Imke Gerdes (she/her) | Alejandro Z

On 26 September 2024, the OECD announced that the OECD/G20 Inclusive Framework on BEPS has published a model competent authority agreement (MCAA) on Amount B of Pillar One. Amount B is a new approach for pricing baseline marketing and distribution activities, which seeks to streamline and simplify the application of the arm’s length principle.

🚨📖 The EBA issues final guidance on internal policies, procedures and controls to ensure the implementation of EU & national restrictive measures. Guidelines can be accessed here ⏩ https://lnkd.in/dxxxh3-g Key taweaways in this short clip ⏬

The OECD released several documents in terms of Pillar Two. Probably the most interesting one is the new administrative guidance (another one…) I say this for at least two reasons: - Even if not named as such it could be seen in essence as an anti-avoidance rule imposed by OECD under the Pillar Two regime. It aims to limit incentives that countries may have put in place to shield the impact of Pillar Two to MNEs in their jurisdiction.  - For those that thought that at least the Transitional CbCR Safe Harbors are final – think again. The administrative guidance also impacts those. By the way great timing in terms of the release for calendar year-end closing activities.

The OECD co-chairs stated the Inclusive Framework member countries have stabilized the text of a Multilateral Convention (MLC) on Amount A, but have been unable to reach agreement on the mandatory application of Amount B by jurisdictions that implement the Amount A MLC (the “Amount B Framework”) and hence have still been unable to reach a final agreement on the implementation of Pillar One. The statement indicates that the co-chairs intend to continue working to achieve a consensus on the Amount B Framework and so the overall Pillar One package.

On 26 September 2024, the OECD announced that the OECD/G20 Inclusive Framework on BEPS has published a model competent authority agreement (MCAA) on Amount B of Pillar One. Amount B is a new approach for pricing baseline marketing and distribution activities, which seeks to streamline and simplify the application of the arm’s length principle. The MCAA relates to the application of the simplified and streamlined approach.

In their article “Thoughts on the Amount B Framework: Considerations for Contributions Within and Beyond the Baseline Scope” published in International Transfer Pricing Journal, Ronald Bernstein and Yves Hervé discuss implications for the application of the Amount B pricing framework under consideration of various aspects in cases in which the baseline scope as defined by the OECD is either met or exceeded. They provide suggestions on how to approach and deal with the intricacies of the application in practice. The authors hope their insights contribute to further useful implementation guidance by the OECD in the future. Read more here: https://bit.ly/3OoI54J

📚 We invite you to read the OECD Due Diligence Guidance for Responsible Business Conduct below. This guide offers clear advice on managing risks in your operations, supply chains and business relationships. It provides simple steps to deal with and avoid negative impacts on workers, human rights and the environment. Download the attached PDF for practical tips and examples! ⬇️