On 4 October 2022, Treasury released a consultation paper on the Global Agreement on Corporate Taxation: Pillar 1 and 2. The consultation paper addresses the proposed implementation and operation of globally agreed Pillar 1 and 2 corporate tax reforms into Australian domestic law.
These reforms, developed by the OECD Inclusive Framework on Base Erosion and Profit Shifting, aim to address tax challenges arising from the digitalisation of the economy to ensure multinationals pay a fair share of tax where they operate, and particularly includes a global 15% minimum corporate tax rate.
In response to Treasury’s request for comments on the Consultation paper, BDO National Tax has prepared a BDO submission.