Talks@Bruegel: The international tax framework with Pascal Saint-Amans

Event materials

On 8 October 2021, 137 countries agreed a two-pillar solution to reform the international tax framework. Pillar One provides for new rules to allocate more profit and taxing right to market countries while Pillar Two establishes a global minimum tax of 15% effective. Pillar Two was translated into a directive which enters into force in January 2024. Pillar One still remains to be finalised through a multilateral convention. There is uncertainty on whether the US Senate will ratify such an agreement. What is the prospect? What consequences for Europe and the push for unilateral measures like digital service taxes in a context where trade tensions have been increased following the IRA.